Barclays became the first institution fined by the United Kingdom over the LIBOR scandal.
LIBOR was a benchmark interest rate intended to reflect the rates at which major banks could borrow from one another. It influenced trillions of dollars in loans, derivatives and other financial contracts. Traders and submitters at several banks were accused of manipulating submissions to benefit trading positions or make a bank appear stronger.
In June 2012, Barclays agreed to pay a combined penalty of £290 million to UK and US authorities. The action was the first major public settlement in the scandal. Authorities later investigated and punished other banks and individuals.
LIBOR manipulation is not the same as a single fraudulent loan. It concerned the process used to calculate a widely used benchmark. Regulators eventually moved markets toward replacement rates, including the Secured Overnight Financing Rate in the United States and the Sterling Overnight Index Average in the United Kingdom.