Τετάρτη 28 Νοεμβρίου 2012

Barclays Disciplined 13 Staff Over Libor Case

Barclays PLC (BCS) has disciplined 13 people in relation to allegations of rate-fixing, according to Rich Ricci, the head of the group's investment bank.
Speaking to members of Parliament on Wednesday, Mr. Ricci added that of those, five traders had been "terminated" and that there are several others who were appealing the bank's decision to fire them. However, many of those involved in the alleged wrongdoing had left the bank before they could be punished and joined other institutions, Mr. Ricci said.
Barclays has informed their current employers of the finding of their internal review into rate-fixing, he added.
Barclays is looking to rebuild its reputation after it admitted having tried to rig the London Interbank Offered Rate. Mr. Ricci said the investment bank is now looking at its businesses through a reputation lens and deciding whether to keep them going.
"Would they pass the tabloid test?" said Mr. Ricci. "If you read about the activity in a newspaper, would you be proud?" Secondly, could this activity lead to problems in the future, he asked. To this end, the bank is considering axing several activities, including its tax-advisory business and agricultural commodities trading, he said.
Separately, the U.K. Treasury on Wednesday launched a consultation on potential laws to bring Libor under regulatory control and make rigging the rate a criminal offense. In a statement, the U.K. Treasury said that the public consultation would close Dec. 24 and that the government wants to include rules on Libor in a Financial Services Bill that is currently being scrutinized by Parliament.
"The government is committed to restoring the confidence of this crucial international benchmark," the Treasury said. The consultation comes after a report by top regulator Martin Wheatley that put forward a 10-point plan to overhaul Libor.
Write to Max Colchester at max.colchester@wsj.com


(END) Dow Jones Newswires 

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