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SFO confirms investigation into Libor

The Serious Fraud Office has confirmed plans to investigate the rate-rigging of Libor.

SFO director David Green QC confirmed the move in a short announcement which comes on the back of Barclays being fined over £290m after accepting its part in attempting to manipulate the interbank rate.

Earlier this week, the FT reported that Chancellor George Osborne was preparing to boost the budget of the SFO to help it pursue a criminal investigation into the rigging of key benchmark rates by Barclays and other banks.

The SFO backed out of an investigation into rate rigging last year with former director Richard Alderman citing a lack of resources and a fear of covering areas already looked at by the FSA and the Office for Fair Trading.

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Comments

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

  1. Alastair Gordon 6th July 2012 at 3:00 pm

    I am just a Scottis corporate lawyer so have no claim to the intricacies of English criminal law but the Fraud Act 2006, Section 2 seems pretty clear and Barclays has admitted the wrongful acts in it regulatory settlements so what is so complex in the investigation that SFO has apparently sought extra funds for?? More jobs for more metropolitan bubble dwellers?

  2. I think in the final analysis, a few people will fall on their swords some senior functionaries / management levels in the banks will be replaced and the whole thing will be white washed away.

    Anyway, what is wrong with two banks negotiating a rate of interest for lending/borrowing between each other.

    Just sounds like ordinary commercial practice. Borrow from one bank at one rate and either lend it to another party at a higher rate for profit.

    All commercial organisations trade for profit otherwise they would not survive.

    If this goes the way of the Levison inquiry, it will be some years before anything changes.

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