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Tyrie: Barclays behaviour ‘inexcusable’

Treasury select committee chairman Andrew Tyrie says attempts by Barclays to manipulate the rate at which banks lend to each other is “inexcusable”.

Earlier today, it was announced Barclays has been fined £290m by the FSA, the US Commodity Futures Trading Commission and the US Department of Justice for misconduct relating to the London Interbank Offered Rate and the Euro Interbank Offered Rate. This is the largest fine ever imposed by the FSA.

Tyrie says: “This was a serious breach. I am very concerned about it. The price setting mechanism of Libor is crucial to the integrity of the markets. This appears to have been put at risk. From the information I have, it looks inexcusable.”

The regulator says Barclays’ breaches involved a significant number of employees and occurred over a number of years.

Barclays’ misconduct included making submissions which formed part of the Libor and Euribor setting process that took into account requests from Barclays’ interest rate derivatives traders.  The FSA says Barclays’ traders were motivated by profit and sought to benefit the bank’s trading positions.

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There are 3 comments at the moment, we would love to hear your opinion too.

  1. There is more than one way to fight a war.
    1. You can send in troops with guns and tanks
    2. You can “Nuke em”
    3. You can sow GM modified crops which will cause natural crops to be overtaken and then the GM crops fail to germinate. Wipes out a population quite effectively.
    4. You can drop anthrax in the dairy fields which then gets in to the milk supply and then affects those who drink it.
    5. Or what appears on the surface to be less painless, you can carryout economic warfare by distorting markets and providing inaccurate information.
    If I was a senior Barclays member of staff, I would be moving to France TODAY as this appears to have affected the US as much as the UK and hence could be considered financial terrorism as much as it was with the NatWest 3. How high up in Barclays did the knowledge of these actions go? I have read it said that “The FSA said Barclays’ breaches of the FSA’s requirements encompassed a number of issues, involved a SIGNIFICANT number of employees and occurred over a NUMBER of years.”
    The FSA bangs on about Ethics and has even made it a mandatory part of the level 4 for advisers and yet senior managament don’t even have to have passed a level 4, and some appear to have no ethics. We are required not only to report suspected drug trafficking, money laudnering, but also the PROCEEDS of CRIME and market manipulation to this exten is a CRIME. As such anyone who has knowinglety not reported it to their MLRO is potentially liable to prison as is the MLRO if he ignored it as is any director this was then referred to who ignored it and so on up the line.
    If this was drug trafficking, we’d be saying that punishing a dealer wh is also a user is NOT the problem, it is the manufacturers furtehr up the food chain who don’t use themselves, but live off other people’s misery. Take this exampel across to banking and the people at the bottom getting the bonuses and falsifying info are the addict dealers, but it is those furtehr up the food chain who know this is happening and distance themselves whilst still keeping all their historical bonuses (a proceed of finanmcial crime either unknowingley or knowingley)

  2. Julian Stevens 2nd July 2012 at 9:15 am

    Interviewed yesterday morning by Andrew Marr, Adair Turner suggested that the FSA should be granted (or perhaps be allowed to grant itself) yet more powers, this time to be able to pursue criminal actions against people such as the traders responsible for activities of this sort. Isn’t that the responsibility of the CPS?

    I’m not for a moment suggesting that the FSA exceeded its responsibilities in uncovering these wrongdoings, but it appears now to want to be the investigating officer, the arresting officer, prosecuting attorney, judge, jury and executioner, all funded by the FS industry. This seems to me to be far too much power to be vested in one body and far too much to be funded by the private sector.

    Given that the privately funded MAS, without consultation, is taking on more and more responsibilities in place of the CAB and various hitherto publicly funded debt counselling agencies, one wonders just where it’s going to end. At this rate, the government will foist on the FS industry responsibility for funding the costs of policing just about anything and everything even tangentially connected to financial misdeeds. Before much longer, the SFO will be subsumed into the FSA/FCA, with everyone who works presently for the former being employed by the latter, and the burden of regulatory levies will increase even further.

    Again, an Independent Regulatory Oversight Committee is needed to put the brakes on this endless empire building on the part of the FSA, with the unassailable authority to say: Enough is enough, you’ve enough powers as it is and other bodies exist already with responsibility for doing what what you now want to take on ~ the FSA is a regulator, not a prosecutor and nor should it be.

  3. we willi contact us and canada or other state valid try again

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