Lloyds Banking Group has dismissed eight members of staff for their roles in manipulating Libor and fraudulently reducing the cost of access to the Government’s Special Liquidity Scheme.
The bank has also withheld £3m in bonus payments to the individuals.
Lloyds chairman Lord Blackwell described the actions of the employees as “completely unacceptable”. Four more individuals previously under investigation have been cleared and are expected to return to work.
This comes after the firm suspended seven employees in relation to the scandal in July this year. It is unclear at this stage how many of these employees were sacked.
In addition to manipulating Libor, Lloyds has also been penalised for rigging the ‘repo rate’, which is used to calculate the level of fees it had to pay for access to the Bank of England’s liquidity scheme – helping to lower the cost of funding during the credit crunch.
Lloyds has so far been fined £218m for its role in the manipulation of the benchmark interest rate, including £62m to the US Commodity Futures Trading Commission and £51m to the US Department of Justice. It was also fined £7.8m for rigging the repo rate.
LBG chairman Lord Blackwell says: “The board has been clear that it views the actions of those responsible for the misconduct referred to in the settlements as being completely unacceptable. It is entirely right that the group undertook a prompt, independent and thorough disciplinary process immediately after the settlements were announced and has taken appropriate action as a result.
“A number of individuals have been dismissed. In addition, the remuneration committee is tasked with ensuring that the outcome of the disciplinary process and the significant reputational damage and financial cost to the group are fully and fairly reflected in the options considered in relation to other staff bonus payments.”
Lloyds Banking Group chief executive Antonio Horta-Osario says: “Having now taken disciplinary action against those individuals responsible for the totally unacceptable behaviour identified by the regulators’ investigations, the board and the group management team are committed to preventing this type of behaviour happening again.”