Libor: the facts - Telegraph Barclays was fined £290m by US and UK authorities in June for attempting to manipulate Libor in an effort to paint a flattering picture of its financial health to markets. Banks globally are thought to have fixed Libor in the depths of the financial crisis, when interbank rates were soaring, because a high rate reflects badly on the state of a bank's balance sheet. Libor spiked to a historic high of 6.8pc at the height of the credit crunch, but should be roughly the same as the Bank of England base rate (currently 0.5pc). It is thought at least 15 institutions worldwide are being investigated for possible Libor manipulation. In August, Royal Bank of Scotland, Barclays and HSBC were among seven banks handed legal notices demanding that they assist in an inquiry by the attorneys general of New York and Connecticut. Lloyds Banking Group is also being probed by US authorities over alleged Libor rigging after Florida's state regulator summoned the bank to answer questions. UK authorities have likewise come under fire for the part they played in the Libor scandal. It emerged that US Treasury Secretary Timothy Geithner make a series of recommendations for reforming Libor to the Bank of England four years ago, when he was president of the Federal Reserve Bank of New York.