Post date: Jun 28, 2012 2:48:32 PM
LONDON, ENGLAND, UK (JUNE 28, 2012) (PARLIAMENT TV) - British authorities must find out which executives at Barclays knew about its attempts to manipulate key market interest rates, British finance minister George Osborne said on Thursday (June 28), warning that criminal proceedings could follow.
Shares in Barclays headed for their biggest one-day fall since 2009 as British authorities set to investigate the bank's bosses who attempted to manipulate key market interest rates.
The Financial Services Authority investigation into the how Britain's key interbank lending rate, Libor, was fixed found Barclays bank had manipulated rates over several years.
"As far as the chief executive of Barclays is concerned, he has some very serious questions to answer today. What did he know and when did he know it? Who in the Barclays management was involved, and who therefore should pay the price?" Osborne told parliament.
"Barclays are not alone in this, the FSA is continuing to investigate the conduct in a number of institutions."
Barclays, whose shares were trading down more than 11 percent, was fined 290 million pounds by U.S. and British authorities on Wednesday (June 27) after investigations found the bank tried to manipulate key market interest rates.
The British government has promised a regulatory overhaul.
"Failures in our banks and financial system have cost the country billions and put thousands out of work. Those responsible should be held responsible. We want our financial services supporting the creation of jobs and prosperity for millions. Now this government is sweeping away the regulatory system that failed. It will protect tax payers, it will punish wrongdoing and put right the wrongs of an era of financial irresponsibility," Osborne said.
Libor underlies everything from derivatives trades to U.S. consumer credit card rates to loans as far afield as those financing Turkish phone networks.