The LIBOR rigging scandal extends beyond Wall Street. Local governments allege fake rates made budget shortfalls worse and hit public services.

While Wall Street had been bogged down by regulations and scandal, London took the crown for leading global financial center. Now, with the Barclays and LIBOR-rigging investigation, the British city could find itself being regulated as well.

Diamond testified before a committee of the British parliament today about charges Barclays manipulated a key interest rate called the LIBOR. The bank's already been fined over $450 million, but it could be just the beginning of the fallout.

Today the freshly resigned CEO of Barclays Bank goes before a parliamentary committee in London. Parliament is investigating the possible manipulation of interest rates by Barclays and other banks.