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“Libor fixers should face prosecution” – Wheatley

“Libor fixers should face prosecution” – Wheatley

Category: Banking

Updated: 28/09/2012
First Published: 28/09/2012

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Head of conduct at the Financial Services Authority (FSA), Martin Wheatley, has claimed those responsible for rigging inter-bank lending rates should face court action.

Within his independent report into the Libor fixing scandal, Mr Wheatley states that bankers who attempt to manipulate rates must be willing to pay the price for committing such acts and that criminal sanctions should be introduced as a deterrent.

"Society has lost confidence in banks... and we need to restore that," he said. "If that includes jail for the most extreme fraud in the system, then that's what should happen".

Mr Wheatley claimed the current inter-bank rate setting process was 'broken' and that rates should be set based on market data as opposed to being left vulnerable to exploitation by independent submissions from bank traders.

The process has been heavily criticised following the Libor scandal which resulted in Barclays being fined a record £290 million in June.

Investigations by US and UK regulators are ongoing to establish other banks', including Lloyds and Royal Bank of Scotland, involvement in the scandal.

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