Rogue bankers who try to rig interbank lending rates will face the “full force of the law”, the government has said.
Greg Clark, Financial Secretary to the Treasury, said he would make it a criminal offence to manipulate rates such as Libor as part of far-reaching reforms launched in the wake of this summer’s banking scandal.
He said recommendations by Financial Services Authority managing director Martin Wheatley would be accepted in full, including ditching the British Bankers’ Association (BBA) as the group in charge of running Libor.
The BBA revealed separately yesterday that it was looking at setting up an independent professional body for bankers, which could see unscrupulous bankers struck off if they breached standards.
In addressing the BBA’s annual conference, chief executive Anthony Browne said the proposed Banking Standards Board would have to have “sharp enough teeth to give it bite”.