View more on these topics

Lloyds sacks eight staff for Libor rigging

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.”


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Anyone see Margin Call on Saturday night ?

  2. Well it is a start – which has to be some god news ! However it is difficult to know if it is Lloyds – who are sacking the Eight or is it Edinburgh TSB – who apparently have to be surgically removed from LloydsTSB . This after Gordon Brown personally intervened to assist Edinburgh TSB – purchase Lloyds ( and change their name to cover up the poor name of TSB ( and their removing shareholders – without payment – and other shady and unethical dealings). There was the purchase of Halifax Bank of Scotland – sometimes known as HBoS – sometimes Halifax sometimes ” Bonk ” of Scotland have you been . .. ” * ! * ! ” abused by Bonk of Scotland and their employees ? So only Eight people in LloydsTSB conglomerate of Bankers – are responsible for the downfall of LloydsTSB Group – and responsible for millions of pounds worth of FINES ? Were they like Tesco – no finance Director . . .or no one who can count ? Where was Tory Grandee . . . . . . . Lord Bischoff and chums ? One answer may be St Anton for inducement purposes – see LloydsTSB accounts for money spent on extravagant Ski hols in Austria ? ? ? ?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm