LIBOR is an interest rate measure that serves as an underpinning of the global financial system. Last year, Barclays was caught in a scheme to rig LIBOR at the expense of much of the global economy. Its CEO, Bob Diamond, lost his job.
In an interview in The New York Times last week, Diamond's response to the LIBOR scandal took me aback.
"Do you want the truth?" Diamond said. "Up until all of this, I didn't even know the mechanics of how LIBOR was set."
In this video, Fool banking analyst Matt Koppenheffer and I discuss how much a bank's CEO should be expected to know about the businesses they run.