What happened to the corporate citizenship that Barclays was proclaiming back when LIBOR was being corrupted? Even the Chancellor has taken Barclays to task for manipulating the crucial LIBOR interest rate. “Through 2005, 2006 and early 2007 we see evidence of systematic greed at the expense of financial integrity and stability and they knew what they were doing.”
The financial consequences of these banking practices, which are not confined to Barclays by any means, begin with the fines from the regulator at a few hundred million pounds. But the consequential losses – and the work involved to unravel them – could be vast. (Imagine calculating how many people paid too much for their mortgage back when LIBOR was nudged up? And paying them.)
One lesson for the CSR community is that you ignore the core business at your peril. The biggest corporate impacts usually start when the core business is done irresponsibly.