Barclays Faces Trans-Atlantic Scrutiny
Along with an inquiry in London, some of the biggest financial institutions in England are now coming under scrutiny from Washington. Ben Bernanke, chairman of the Federal Reserve, told the US Senate that he could not guarantee that libor rates were no longer being manipulated. Al Jazeera's Barnaby Phillips reports from London.

George Osborne 'To Fight For Bankers' Bonuses' In Europe

THE DAILY TELEGRAPH: George Osborne is preparing to defend the right of British banks to pay large bonuses against EU plans to cap the pay-outs, it emerged last night.

The Chancellor is expected to argue against the crackdown at a meeting of European finance ministers on Tuesday, in spite of a fresh public outcry over the behaviour of bankers in the wake of the rate-rigging scandal.

Mr Osborne will argue that the proposals, to set a maximum 1:1 ratio of bonus to pay, are not the right way to curb City remuneration.

Officials insist that he had taken the same position before details of the Libor rate-fixing scandal emerged, and it has not changed, the Financial Times reported.

But the timing of the meeting is likely to make it politically risky for him to make such a case, with the Chancellor potentially facing the accusation of being in cahoots with bankers despite allegations about their reckless behaviour.

It comes amid outrage that Barclays chief executive Bob Diamond may still be in line for a multi-million pound pay-out following his resignation over rate rigging. » | John-Paul Ford Rojas | Saturday, July 07, 2012

My comment:

This is clearly a case of out-of-touch Osborne defending the indefensible. This man is not in power to serve the people, but to serve his cronies. – © Mark

Debt Crisis: Moody's Downgrade of Britain's Banks to Hit Families
THE DAILY TELEGRAPH: Home owners and businesses face having to pay higher interest rates following a downgrade in the credit ratings of Britain’s biggest banks, analysts warned on Thursday.

Moody’s, a leading international ratings agency, on Thursday night cut its scores for Barclays, Lloyds and Royal Bank of Scotland because of the eurozone crisis.

Senior politicians warned the banks not to use the downgrade as an excuse to charge more for borrowing on the high street.

The downgrade coincided with a warning from the CBI, Britain’s biggest business group, that the fragile economic recovery was at risk of being “choked off by a lack of finance”.

Credit ratings help determine what banks must pay to borrow money on international markets. The lower the rating, the higher the interest rates they pay and the more collateral they must offer. » | James Kirkup, Deputy Political Editor | Thursday, June 21, 2012