Lloyds suspends seven people after £226m bill for rigging interest rates

Lloyds Banking Group has suspended seven employees after it was hit with a £226m bill from regulators on both sides of the Atlantic for rigging crucial interest rates.

The 24% taxpayer-owned bank not only became the seventh financial firm to be fined by the Financial Conduct Authority for manipulating Libor, but the first to be censured for deliberately reducing the fees it paid to the Bank of England for emergency funding during the 2008 banking crisis.

Along with the US department of justice – which handed Lloyds a two-year deferred prosecution agreement – and the Commodities Futures Trading Commission, also in the US, the FCA published a series of emails and electronic chats showing jovial exchanges between traders. Referring to each other as mate, dude and lad, the trader emails are signed off with phrases such as “grovel grovel” and spelling errors such as “happy to ablige … rubbery jubbery”.

Source: TheGuardian

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