Barclays have been fined 291 million for rigging money markets Photo: Press Association The Financial Services Authority (FSA) has said that Barclays are not the only bank implicated in a rate rigging scandal which resulted in the bank receiving a £291 million fine from three regulators.
Up to 40 other banks and financial institutions could be in line to be named and shamed. The FSA acting director of enforcement said:
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.
The bank has been fined a total of £291 million by US and UK regulators. The FSA fined the bank a record £59.5 million and considered taking criminal charges.
The bank could still face a criminal prosecution for rate fixing in America, and an European investigation is still ongoing. The offences took place in Barclays Capital, the bank’s investment banking arm, which was run at the time by Mr Diamond.
Bob Diamond is in the firing line over the rate rigging scandal. Credit: Press Association There have been calls for the chairman and chief executive of Barclays to step down after it emerged that Barclays misled markets for at least four years up to 2009 in an effort to damp down market worries about its vulnerable position at the height of the banking crisis.
Chief executive Bob Diamond is due to be summoned to the Commons Treasury Committee to explain what happened. Chairman of the committee Andrew Tryie told Channel 4 News:
This is appalling. It just beggars belief that this sort of attitude should have been so widespread
The crucial thing now is to make sure that it is being cleared up. That is why we will be calling in Bob Diamond to make sure that what's required had been done in Barclays to improve the culture.
Barclays is the first major financial institution to settle with regulators following a wide-ranging probe that has spanned North America and Europe. Mr Diamond said:
I am sorry that some people acted in a manner not consistent with our culture and values.
The FSA said Barclays' breaches of its requirements involved a significant number of employees and occurred over a number of years.
Chris Leslie MP, Labour shadow financial secretary to the Treasury, said it was vital that Treasury minister review regulation to ensure such malpractice could not happen again:
These are serious instances of market abuse and it is vital that Treasury ministers now review the regulation of Libor arrangements.
Mortgage repayments of ordinary householders up and down the country depend on a fair and true interest rate market mechanism."
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