The scandal involving venerable British bank Barclays has put a spotlight on an industry culture that has gone bad. After traders at the bank were accused of improperly fixing Libor interest rates, probes into the industry revealed a corrupt culture in which people seemingly do as they wish with little concern for whether it is ethically, or evenly legally, right. Now however, the banks may be forced to clean up their act. In what has been described as a watershed moment, investigations have shown an industry where the moral compass appears to be totally off course. The problems are so bad, that Britain’s Parliament is holding an inquiry into the ethics of the banking industry. Some believe that the problems in the industry began when it was deregulated. Under the old system, bankers made money the ethical way, however, in the absence of regulation, it seems that the culture has turned to a ruthless one in which the goal is to make money at all costs. In other words, making money is more important than being ethical. Discussion Questions 1. Did Barclays do anything that other banks weren’t also doing, or did Barclays just get caught? Suppose you found yourself in the same situation as the traders involved in the Barclays Libor scandal. What would you have done? 2. How can a company hold onto its ethical principles in an era of ruthless competition? Discuss the need for sustainable ethics in the banking industry. 3. How could a proactive ethics policy have prevented the Libor scandal at Barclays? Do you think this scandal will prompt Barclays to review its policy on ethics? 4. Barclays has a long and storied history in the financial sector. In your opinion, can the company regain its position as a leading player in the banking world? What steps does it need to take to regain its organizational integrity? 5. Some people have suggested that deregulation of the banking industry facilitated the Libor interest rate manipulation by Barclays. Do you agree? Are regulators at fault for the seeming lack of ethics in the banking industry?