This is quite a development on the banking front as the Financial Conduct Authority, for the first time, has issued a new “Warning notice”. The fresh induction of notice power is perceived as a preparation for prospective banks or fines for bank staff, who are allegedly involved in Libor, or rigging to be precise. Two anonymous bankers have emerged to be the first ever City employees to be affected by this warning notice by concerned regulators following their alleged role in the scandalous labor rigging.
According to Financial Conduct Authority (FCA), preparations are on to implement action against these two bankers for what has been described and discerned as “significant failings” or grave fallacies in connection to their activities that propelled a set-up of “interest rate benchmark”. In its first ever notices issued by the regulatory body after gaining power and control last year, the FCA affirmed that it had identified or located a “manager at a bank”. They believe that this person personally knew or oversaw everything and condoned traders. They kept imploring rate submitters to distort, manipulate or tamper with the benchmarking borrowing precedents. The FCA authority said that it was all prepared to enforce serious action against an alleged “submitter at a bank”, who gave in to requests from traders with vested interests. This mistake would invariably help these people alter or mold benchmark rates.
In case the FCA statistics or revelations are considered, the concerned regulator can always slap these accused people with bans and fines that could effectuate a suspension. It could also mean that they get barred from finding employment in the financial services sector. The course events mark a new precedent since those regulatory authorities have attempted to penalize individuals for Libor-rigging.
Both Royal Bank and Barclays of Scotland have admitted and accepted their involvement in a bid to manipulate Libor. They have admitted to paying hundreds of millions of pounds as fines over the last two tears. As things stand, HSBC and Lloyd Banking Inc have also come under the scanner. The Serious Fraud office, in the last few days, has arrested numerous brokers and bank employees for their alleged involvement in the above mentioned scandal. Prospective investigations have directed a fast-track approach to this ting. Criminal trials are expected to start next year. It is interesting to know that regulatory folds have left no tables unturned in dealing with currency-rigging probe.