The news about three former Barclays employees rigging the Libor interest rate between 2005 and 2007 is very troubling. There is no doubt that this action manipulated interest rate markets which would have costs borrowers and investors a lot of money. Unfortunately, something like this could still happen today. Financial markets depend on interests rates so that the cost of borrowing money can be properly financed. Even though there is a lot of oversight when it comes to trading equities, interest rates are not as closely regulated. Therefore, financial markets are at risk of something like this happening again.
Yes, Barclay employees could still rig the Libor interest rates today. Safeguards are in place for a reason. With increased technology comes increased opportunities to manipulate those things that can benefit some people. Oversight seems to be more lackadaisical these days. Sometimes things only get fixed when it is made known that they are broken. However, those that want to do these kinds of things will work until they find a viable way to make it happen. Advancements in technology are not always to our benefit when only a few have the expertise to make changes and it goes unchecked and unnoticed.
Yes, this could happen. The fact that three former Barclays employees were found guilty of rigging the Libor interest rate between 2005 and 2007 shows that this can happen. For them to be found guilty the fact that they could have actually done this had to be proven. This means it could happen again.
There is too much security and too much oversight for something like this to happen today. Changes have been made in how the system works, and now there are too many fail safes for something like this to happen now. Scandals like this have changed the way interests rates work.