Barclays Libor Fine Prompts U.K. Criminal Investigation
The U.K. Serious Fraud Office opened a criminal probe into the attempted rigging of interest rates that led to a record fine against Barclays Plc (BARC), adding to pressure on banks already under investigation by regulators around the globe.
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The SFO joins the U.S. Department of Justice in criminally investigating how derivatives traders and rate submitters colluded to rig interbank offered rates. The U.K. Financial Services Authority is seeking civil penalties against banks and has said its criminal powers don’t include Libor rigging.
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The SFO was criticized under Alderman for taking on high- profile investigations, including American International Group Inc.’s Financial Products unit and convicted swindler Bernard Madoff’s London operations, only to close them later citing a lack of evidence. The agency has also faced a shrinking budget, a fight with the Home Office to save the SFO from dissolution, and a staff exodus prior to Green’s arrival.
The SFO is “very brave” to investigate Libor, said Richard East, a lawyer at Quinn Emanuel Urquhart & Sullivan LLP in London. “It’ll cost them a huge amount of money. They’ll obviously score direct hits with the particular traders, but will they catch the big fish? I don’t think so.”
http://www.businessweek.com/news/2012-07-06/libor-criminal-investigation-opened-by-u-dot-k-dot-fraud-prosecutors
They furnished false information to a banking industry trade association which combined it with other false information and published it.
What British law was broken?
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