More Banks Face Interest Rate Rigging Investigation

BBC

A number of banks are being investigated and could face sanctions after Barclays was fined £290m ($450m) for trying to manipulate interest rates at which banks lend to each other.

Regulators in Europe, the US and Asia have said that investigations into other banks are “ongoing”.

The UK’s Financial Services Authority said the early signs were that Barclays had not been the only firm involved.

Barclays has said its actions “fell well short of standards”.

Its traders lied to make the bank look more secure during the financial crisis and, sometimes – working with traders at other banks – to make a profit.

Chief executive Bob Diamond and three other top executives at the bank are to give up their bonuses this year.

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Tracey McDermott, director of enforcement at the FSA, which imposed fines alongside the US financial regulator, told the BBC: “We have a number of investigations that are ongoing.

“Obviously we need to look at each case on its own particular facts but the initial indications are that Barclays was not the only firm that was involved in this.”

Read the rest of the article here: BBC


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