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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