In the news - High street banks under investigation after record fine for Barclays

High street banking groups Lloyds and the Royal Bank of Scotland are under investigation as part of a major inquiry into the alleged manipulation of interest rates.

In the news: Teaching resources - 28 June

High street banks under investigation after record fine for Barclays


High street banking groups Lloyds and the Royal Bank of Scotland are under investigation as part of a major inquiry into the alleged manipulation of interest rates.

The scale of the investigation being carried out by the Financial Services Authority – as well as regulators in the United States – was revealed as pressure mounted on Bob Diamond, group chief executive of Barclays Bank, to resign from his post.

The calls for Mr Diamond’s departure were made after it was reported that the banking group had been fined £290million in penalties – the largest ever levied – for repeated breaches of financial regulations dating back to 2005.

The breaches involved “a significant number of employees” according to the FSA, although there is no evidence that Mr Diamond was himself involved with or aware of such practices going on at Barclays.

The FSA have published emails sent to Barclays employees promising bottles of Bollinger champagne in return for attempting to manipulate the interest rate known as the London interbank offered rate (Libor), which affects the cost of borrowing for UK customers.




Related resources


My Money Week collection

  • Help your students improve their own financial capability with this collection of resources.

Managing Your Money – What is banking?

  • This series of fact sheets look at money management and should help pupils learn the banking basics.

Interest Rates/Exchange Rates/Borrowing

  • Explain the difference between interest and borrowing rates with this handy PowerPoint.

Impact of Interest Rates

  • This is an activity to get the students thinking about the impact of changing interest rates on consumer spending and on a business.


Further news resources


First News front page

  • Help your pupils understand the features of the front page of a newspaper.

Write all about it

  • Get students creating their own news report with this step-by-step guide

What is the News?

  • A sociological and media perspective on what makes an event 'newsworthy'.

On the box

  • Help pupils to write their own TV news broadcast with this handy PowerPoint.

Structuring stories

  • A scheme of work to help students structure news stories.

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