Speaking in the House of Commons this afternoon, Chancellor George Osborne said the FSA’s announcement it is fining Barclays £59.5m for manipulating the London Interbank Offered rate and the Euro Interbank Offered Rate, demonstrated “systemic failures at the heart of the financial system”.
He said: “Under the previous Government’s regime fines payed to the FSA are used to reduce the annual levy other financial institutions are asked to pay. I am far from convinced that in all case this is the best use of the money. We are considering amendments to the Financial Services Bill that will ensure fines of this nature go to help the taxpaying public not the financial industry.”
“I do not think it is appropriate other financial institutions, the banks, benefit from a lower FSA levy.”
Osborne added that he has asked Treasury officials to look at whether the move could be applied to the FSA’s £59.5m fine.