Exclusive: Libor scandal forces Barclays from UAE rate panel - sources

[dipsydoodle]

Source: Yahoo New / Reuters

ABU DHABI/DUBAI (Reuters) - British bank Barclays plans to pull out of the rate-setting panel for interbank lending in the United Arab Emirates because of its involvement in the Libor scandal in Britain, three industry sources told Reuters on Sunday.

Barclays belongs to a panel of 12 banks that quote indicative interbank lending rates in UAE dirhams. The quotes are averaged to arrive at a daily range of Emirates Interbank Offered Rates (Eibor), which are used to price financial instruments in the Gulf's top financial centre.

"Barclays has indicated to the UAE central bank that it wants to quit the panel, and the central bank has called for a meeting on Tuesday to discuss who will replace Barclays," a source familiar with the matter said, declining to be named because a public announcement has not yet been made.

A Barclays spokesman was not immediately available to comment. UAE central bank treasury officials declined to comment.

Read more: http://finance.yahoo.com/news/exclusive-libor-scandal-forces-barclays-091939724.html

[aquart]

1. It WANTS to quit?

[dipsydoodle]

2. It may be a bit arbitrary

in context with 16 banks being involved in setting Libor in some shape or form - middle eight actually. Probably has no effect on their day to day business.

[MrMickeysMom]

3. You mean, does this affect the "day to day business" of...

... those holding large positions (98% of the 302 Trillion dollars) worth of notional and derivatives held by all American bank holding companies?

Like these banks do:

JP Morgan
Goldman Sacs
City Bank
Bank of America
Morgan Stanley

[dipsydoodle]

4. No.

Barclays which is the subject of the OP.