Barclays Libor Scandal Puts Investment Bank Arm At Risk

LONDON, July 6 (Reuters) – Barclays investment banking boss Rich Ricci was in tears when he addressed his traders after the sudden exit of CEO Bob Diamond this week, as a rate-rigging scandal puts the future of his business on uncertain ground.

Ricci was shaken by the sudden exits of Diamond and his other good friend Jerry del Missier. But he also knows their departures herald big change for his investment bank.

An interest rate rigging scandal at Barclays makes the separation or shrinking of its investment banking arm more likely, given greater regulatory and political intrusion and the exit of the trio of investment bankers at the top of the bank.

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