Libor riggers should be jailed, says FSA regulator
Last edited Fri Sep 28, 2012, 06:49 AM - Edit history (1)
Source: Guardian
City dealers who rig Libor should face criminal charges and jail, the head of the review into reforming the benchmark interest rate has said, as he promised swift action to repair the "broken" rate setting system through tougher regulation.
Martin Wheatley, a senior regulator at the Financial Services Authority, said on Friday that other institutions faced similar punishments to those handed out to Barclays, which was fined £290m this summer for its attempts to manipulate the rate used to set borrowing costs for companies and households around the world.
He recommended that the FSA should regulate the Libor system, and told the Today programme that in the extreme cases those who manipulate Libor should go jail.
"I think society has lost confidence in banks," he said. "We're going to be on the front foot"
Read more: http://www.guardian.co.uk/business/2012/sep/28/libor-riggers-jailed-fsa-regulator
BoE's King wants prompt implementation of FSA Libor plan.
(Reuters) - Bank of England Governor Mervyn King said on Friday he wanted prompt implementation of proposals by Britain's top financial watchdog to fix Libor.
Martin Wheatley, head of the Financial Services Authority, outlined a 10-point plan to reform London interbank offered rates, saying the benchmark was so deeply entrenched in the financial system that it could not be easily replaced.
King said in a statement: "The Bank very much welcomes the Wheatley Review's proposals to improve the functioning, governance and regulation of Libor and would want these to be implemented as soon as possible.
"Over the medium to long term, further thinking will be needed to meet the challenge of benchmarks based on thinly traded markets, especially when they are quote-based."
http://uk.reuters.com/article/2012/09/28/uk-britain-libor-king-idUKBRE88R0ED20120928
= new reply since forum marked as read
