http://www.bbc.co.uk/news/business-19199683

LIBOR is an acronym for London Interbank Offered Rate, a global rate that is used by banks when setting a financial deal with other banks, a measure of trust that banks have in each other as well. The LIBOR rate is set by removing the top and bottom rates submitted by various banks, and taking the average percentage of the remaining rates.

Since the rate is taken from the average of the remainders, traders from their respective banks schemed to influence the rates in their favour, by getting their colleagues to raise or lower the rate for their benefit.

In addition to the corruption of the traders, Barclays has undermined banks’ mutual trust by trying to shake off media attention of the bank itself being in trouble. In the financial crisis of 2007, Barclay’s rate was much higher than some other banks, prompting opinions of the declination of the bank. So following much controversy, Barclays began to submit much lower rates (shown by the graph in the article) in order to avoid attention and appear to be a healthy bank. This corruption is an explicit example of their lack of care for their stakeholders and their ethical responsibilities.