Mortgage News
Barclays hit with record FSA £59.5m fine over LIBOR failings
Barclays has been slapped with the largest-ever fine by the FSA and a huge penalty by the US authorities after it breached rules regarding LIBOR.
The FSA fined the bank £59.5m for significant failings in relation to LIBOR and EURIBOR, after it sought to profit from the settlement process.
The FSA said Barclays made submissions which formed part of the LIBOR and EURIBOR setting process that took into account requests from Barclays’ interest rate derivatives traders. These traders were motivated by profit and sought to benefit Barclays’ trading positions.
It also sought to influence the EURIBOR submissions of other banks contributing to the rate setting process.
Barclays qualified for a 30% discount under the FSA’s settlement discount scheme, after working with the FSA. Without the discount the fine would have been £85 million.
In addition Barclays has agreed to pay a fine of $160m to US authorities for the same offences.
Why new-build property investment is appealing to a new generation of landlords
Sponsored by BM Solutions