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Britain backs crackdown on bankers after Libor scandal

Published on Oct 18, 2012 12:19 AM

LONDON (AFP) - Britain announced plans on Wednesday to make it a criminal offence to manipulate interbank Libor lending rates, backing the findings of a major report into the Barclays rate-rigging scandal.

The Financial Services Authority (FSA) - the nation's finance regulator - had recommended last month that the Libor interest rate receive a "complete overhaul" in the wake of this summer's notorious affair.

Treasury minister Greg Clark said the coalition government would press ahead with far-reaching reforms from the review, which was carried out by FSA managing director Martin Wheatley and commissioned by finance minister George Osborne.

The Treasury added the Wheatley report's recommendations would be implemented "in full", adding that the British Bankers' Association (BBA) would be stripped of its role in setting Libor, with the oversight process handed to a new group.

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