Barclays put £500m to one side for Libor rigging
More financial institutions raiding the funds in the large biscuit tin under the bed news as Barclays have put aside £500m to cover the cost of the investigations into the rigging of currency markets.
This £500m is much larger than the £290m of total fines that Barclays have received for fiddling Libor in 2012, and is released as the Financial Conduct Authority tries to sort out a settlement with six major banks over their roles in the £3.5tn a day foreign exchange markets.
We should have a result of the investigations some time in November and RBS will be publishing their results from all this tomorrow.
Barclays told everyone about this provision as they reported their figures for the third quarter of the year, where they also lost £170m as they covered the cost of the payment protection insurance (PPI) mis-selling farce.
Of course, this all means that Barclays profits have taken a huge hit, but frankly, it is their own fault so they can't moan about it.
The result of all this means that there's going to be some costs cut. There's a plan for Barclays to axe 19,000 jobs and investors need to be appeased as they've been furious at the high level of bonuses being doled out to top brass.
This all comes after the Lloyds group made similar provisions and, of course, announced huge job losses. Across the banking and finance sector, the PPI scandal is the costliest thing that's ever happened in banking industry.