Banking: LIBOR and EURIBOR

Lord Forsyth of Drumlean Excerpts

Tuesday 12th February 2013 Lords Chamber

[Lord Deighton]

With respect to the noble Lord’s question on whether the attempt was successful, I think that is actually the issue. The FSA’s review found that it was unclear whether the manipulation did result in a change of rates, so that is an open question. On the degree of co-operation shown by the firms under investigation, I understand that the firms were entirely co-operative. Of course, they are all under new management and, effectively, are the new brooms trying to sweep clean. I am afraid that I cannot layer together the timing of that co-operation vis-à-vis the application of the US penalties, but I am happy to look into that and get back to the noble Lord.

[Lord Forsyth of Drumlean]

Are the Government comfortable with very senior executives in the FSA, who are after all responsible for deciding those penalties, being able to move rapidly into employment with the banks at seven-figure salaries?