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Barclays settles Libor charges with record fines

By  |  June 27, 2012

Barclays has settled civil charges brought by the U.S. Commodity Futures Trading Commission, the U.S. Department of Justice, and the U.K. Financial Services Authority. The bank has admitted to manipulating Libor and Euribor rates from 2005 to 2009. Emails between Barclays traders and submitters revealed that the former, acting at the request of senior management, requested low benchmark interest rates to hide its liquidity problems and improve its trading positions. Barclays also asked traders at other banks to request Libor and Euribor submissions.

Barclays will pay $200 million to settle the CFTC’s charges of attempted manipulation and false trading; $160 million to settle the DOJ’s charges, and $92.8 million for the FSA. The CFTC and FSA fines set records. A criminal investigation by the DOJ is still pending, and Barclays will continue to cooperate.

Full content: Reuters

 

Related content: Libor Litigation and the Role of Screening: The Need for Enhanced Compliance Programs

 

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