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View the article online at http://citywire.co.uk/wealth-manager/article/a599954

Regulators hit Barclays with £290m fine for Libor failings

by Emma Dunkley on Jun 27, 2012 at 13:35

Regulators hit Barclays with £290m fine for Libor failings

UK and US regulators have fined Barclays Bank £290 million for significant failings in relation to Libor and Euribor.

The Financial Services Authority (FSA) has fined Barclays Bank £59.5 million for misconduct relating to Libor and Euribor.

At the same time it emerged the US regulators had imposed a penalty of $200 million (£128 million) on the bank for attempted manipulation and false reporting charges. On top of this, as part of an agreement with the Department of Justice, Barclays admitted to its misconduct and has agreed to pay a penalty of $160 million.

Barclay chief executive Bob Diamond (pictured) said he will forgo his annual bonus this year following the massive fine.

Diamond said: ‘The events which gave rise to today’s resolutions relate to past actions which fell well short of the standards to which Barclays aspires in the conduct of its business. When we identified those issues, we took prompt action to fix them and co-operated extensively and proactively with the Authorities.

'Nothing is more important to me than having a strong culture at Barclays; I am sorry that some people acted in a manner not consistent with our culture and values. To reflect our collective responsibility as leaders, Chris Lucas, Jerry del Missier, Rich Ricci and I have voluntarily agreed with the board to forgo any consideration for an annual bonus this year.’

Record FSA fine

The FSA represents the largest the watchdog has ever imposed.

Barclays ‘significant failings’ which breached the FSA’s requirements include a range of issues and involve a number of employees, over a period of years.

The bank’s misconduct included making submissions which formed part of the Libor and Euribor setting process that took into account request from its interest rate derivatives traders.

These traders were motivated by profit and tried to benefit from Barclays’ trading positions.

The FSA said the bank also sought  to influence the Euribor submissions of other banks contributing to the rate-setting process.

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6 comments so far. Why not have your say?

S-ville

Jun 27, 2012 at 15:01

I've just noticed that Bob Diamond's wallet weighs so much that it actually makes him lean over to the left...

Can't be good for his posture.

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Badders

Jun 27, 2012 at 16:02

Instead of foregoing a bonus, how about paying the fine? After all, the shreholders have put up with far too much already.

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Jeremy Fryman

Jun 27, 2012 at 22:21

After the miss selling scandal, all the ethical criticism, now this, surely this is a resigning matter.

He can go without it hurting too much.

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G Brown

Jun 27, 2012 at 23:05

Only the beginning.

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S-ville

Jun 28, 2012 at 08:21

Systematic fraud on a massive scale. We seem to have gone beyond 'too big to fail' to a new, a very alarming, situation of 'too big to obey the law'.

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Proud Banker

Jun 30, 2012 at 22:17

If this proves to be systemic then Bob and the Compliance Director have to go.

If this is the action of a few dodgy traders then he should not resign.A CEO of a company that size cannot possibly know what's going on at that level, he has to rely on others in particular the Risk and Compliance functions, what the hell were they doing.....

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