Lord Turner attacks "cynical greed" of Libor traders
FSA chairman Lord Adair Turner has attacked the “cynical greed” of traders in the banking industry in the wake of the Libor scandal.
Last month, the regulator fined Barclays £59.5m for manipulating the London Interbank Offered Rate and the Euro Interbank Offered Rate. RBS, HSBC, UBS and Citibank are also under investigation for alleged interest rate rigging.
Earlier today, Bob Diamond resigned as Barclays chief executive. The Serious Fraud Office is considering bringing criminal prosecutions over the manipulation of interest rates by banks.
Addressing the FSA’s annual public meeting in London today, Lord Turner (pictured) says: “The Libor scandal has caused a huge blow to the reputation of the banking industry.
“The cynical greed of traders asking their colleagues to falsify their Libor submissions so that they could make bigger profits – has justifiably shocked and angered people, in particular when we are facing hard economic times provoked by the financial crisis.
“But sadly it is clear that the behaviours evidenced in the Libor case were not, in the years before the crisis, confined to this specific area of financial activity.”