investment banks

Barclays record FSA penalty for LIBOR manipulation will be superseded by other banks' fines as the investigation deepens, according to Schroders' Richard Buxton.

Chancellor George Osborne has called the manipulation of LIBOR rates by Barclays traders "a shocking indictment" of the greed of the financial sector, while confirming RBS and HSBC are also under investigation.

Barclays' share price plummeted 18% early this afternoon amid calls for boss Bob Diamond to quit in the wake of the LIBOR scandal, and following a speech from George Osborne attacking its traders 'systematic greed'.

Credit rating agency Moody's has downgraded 15 financial institutions overnight, including major UK and US banks.

JPMorgan Chase & Co has sold off around 70% of the ‘London Whale' position which caused $2bn of trading losses for the investment bank, according to reports.

Banks should use the row over the sail of complex financial instruments to small businesses to overhaul their customer relationships and link pay to customer service, according to Hector Sants.

UK bank shares have jumped following last night's announcement of a £100bn stimulus package for the UK economy.

The government has confirmed its plans to force banks to ring-fence their retail operations, as well as other measures recommended by the Independent Commission on Banking (ICB).

European ministers' decision to agree a bailout for Spain's banking sector at the weekend has boosted markets, but managers remain cautious on the the extent to which it will solve the eurozone's long-term problems.

Jérôme Kerviel, the rogue trader who lost €4.9bn at Société Générale, described himself in court yesterday as a fall guy in a plot to hide the bank's exposure to sub-prime lending.