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| Version 1 | Version 2 |
|---|---|
| Lloyds dismisses eight staff over Libor | Lloyds dismisses eight staff over Libor |
| (about 5 hours later) | |
| Lloyds Banking Group has dismissed eight staff members following an investigation into the manipulation of some key interest rates set in London. | Lloyds Banking Group has dismissed eight staff members following an investigation into the manipulation of some key interest rates set in London. |
| The move follows the bank's £218m fine in July for "serious misconduct" over the setting of Libor. | The move follows the bank's £218m fine in July for "serious misconduct" over the setting of Libor. |
| Chair Lord Blackwell said the actions of those responsible for the misconduct were "completely unacceptable". | Chair Lord Blackwell said the actions of those responsible for the misconduct were "completely unacceptable". |
| Lloyds, which is 24.9% owned by the government, said the individuals had also forfeited £3m in unpaid bonuses. | Lloyds, which is 24.9% owned by the government, said the individuals had also forfeited £3m in unpaid bonuses. |
| The bank said its remuneration committee would now ensure the outcome of the disciplinary process was "fully and fairly reflected" in other staff bonus payments. | The bank said its remuneration committee would now ensure the outcome of the disciplinary process was "fully and fairly reflected" in other staff bonus payments. |
| Regulators found that Lloyds manipulated the London interbank offered rate (Libor) for yen and sterling and tried to rig the rate for yen, sterling and the US dollar. | Regulators found that Lloyds manipulated the London interbank offered rate (Libor) for yen and sterling and tried to rig the rate for yen, sterling and the US dollar. |
| It was also found to have manipulated submissions for another short-term rate linked to the value of UK government debt. | It was also found to have manipulated submissions for another short-term rate linked to the value of UK government debt. |
| 'Highest integrity' | 'Highest integrity' |
| Lloyds said Monday's disciplinary action followed July's fine by the UK-based Financial Conduct Authority (FCA) and a US-based trading commission, the Commodity Futures Trading Commission | |
| However, it said it had been unable to take disciplinary action against " a number of individuals" who had already left the bank before the settlements. | However, it said it had been unable to take disciplinary action against " a number of individuals" who had already left the bank before the settlements. |
| Lloyds Banking Group chief executive Antonio Horta-Osorio said the bank was committed to preventing this type of behaviour happening again. | Lloyds Banking Group chief executive Antonio Horta-Osorio said the bank was committed to preventing this type of behaviour happening again. |
| "We are determined to make Lloyds Banking Group a company of the highest integrity and standards," he added. | "We are determined to make Lloyds Banking Group a company of the highest integrity and standards," he added. |
| In July, Bank of England Governor Mark Carney said the attempted manipulation was "highly reprehensible" and could lead to criminal action against those involved. | In July, Bank of England Governor Mark Carney said the attempted manipulation was "highly reprehensible" and could lead to criminal action against those involved. |
| Lloyds also said it had shared the outcome of its disciplinary process with City regulator the Financial Conduct Authority and other relevant authorities. | Lloyds also said it had shared the outcome of its disciplinary process with City regulator the Financial Conduct Authority and other relevant authorities. |
| 'Fix it higher' | |
| In July, the US trading commission said the "unlawful conduct" of Lloyds had "undermined the integrity" of Libor. | |
| It said Lloyds had acted to benefit its trading positions and protect its reputation by manipulating the rate when it was in the process of buying HBOS during the financial crisis. | |
| The commission also released a transcript detailing examples of requests to manipulate the sterling and US dollar Libor rate. | |
| They included an employee from Lloyds telling their counterpart at HBOS: "Oh mate, I always have loads of loans going out at the end of the month so I always try to fix it higher". | |
| The trader added: "They keep calling it lower... I can't work out why it is going down all the time... I will leave it at 67 and I won't go any lower, right?" | |
| A sterling submitter at HBOS responded with: "Yeah". |