Mortgage News
FSA defends role in LIBOR scandal
The Financial Services Authority (FSA) has defended its role in the LIBOR fixing scandal after being criticised by MPs.
The Treasury Select Committee published its report into the scandal in August, which said the FSA had failed to investigate market rumours of rate-rigging properly, the BBC reports.
The regulator said it had been engaged with US regulators on the issue since 2008. It also denied it had taken a narrow view on its power regarding fraudulent conduct.
The scandal erupted in June, last year when the FSA and US regulators fined Barclays £290m. Other banks were then embroiled.
MPs on the committee said the FSA failed to identify “weakness in compliance” despite numerous visits.
The BBC report said the FSA responded by saying it had increased the intensity of its supervision since 2008, focusing on firms’ control functions and board oversight, and that its successors – the Financial Conduct Authority and the Prudential Regulation Authority – would build on this new approach to supervision.
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