27 June 2012, a major bank in the United Kingdom, Barclays, settled with U.S. and U.K. regulators, over charges it was manipulating key international interest rates, specifically the LIBOR.

The settlement is for $451 million USD, which is a pittance when you consider the havoc Barclays wreaked on economies throughout the western world. Barclays is the forth largest bank in the world.

Barclays is a major player in the setting of the LIBOR (London Interbank Offered Rate).  This is an interest rate charged to other banks, and is done on behalf of the British Bankers’ Association in London, England.  As of 2008 there were 60 international banks beholden to the LIBOR.

U.S. and U.K. investigations have revealed that not only are British too big to fail banks involved in manipulating interest rates, but so are U.S. banks. It’s not just interest rates, but currency valuations as well.

Besides Barclays the following banks are also being investigated for market manipulation: Citigroup Inc. (C), Royal Bank of Scotland Group Plc, UBS AG (UBSN), ICAP Plc (IAP), Lloyds Banking Group Plc (LLOY) and Deutsche Bank AG are part of at least 18 possibly criminal banks being accused.

Swiss based UBS decided to cooperate with investigators in exchange for legal immunity!

And don’t think this settlement means Barclays, or any other bank, will straighten up and do the right thing, as one law professor said: “It’s [settlements for breaking laws & regulations] become the cost of doing business.”-Jerry W. Markham, former U.S. Commodity Futures Trading Commission