UK Fraud prosecutors to Investigate Libor-rate fraudsters like Bob Diamond
Libor Manipulation Covered by U.K. Law, Fraud Prosecutors Say
By Lindsay Fortado – Jul 30, 2012 4:23 PM GMT+0100
U.K. fraud prosecutors will investigate the manipulation of Libor and other interest rates after deciding that existing British criminal law covers the conduct involved.
Existing U.K. law provides the basis to bring charges, David Green, the director of the Serious Fraud Office, said today in a statement. The U.K. joins the U.S. in criminally investigating how derivatives traders and rate submitters colluded to rig the London Interbank Offered Rate, or Libor.
The SFO probe began after Barclays Plc (BARC) was fined a record 290 million pounds ($455 million) by U.K. and U.S. authorities, and British politicians called for a criminal investigation. The U.K. Financial Services Authority, which levied the fine along with the U.S. Commodity Futures Trading Commission and the Justice Department, didn’t have the power to file criminal interest rate manipulation charges.
At least a dozen banks are being probed by regulators worldwide. Green said on July 2 that the agency was considering whether it was possible to bring a prosecution.