THE CITY watchdog yesterday used new powers to issue its first warning notices to two bankers linked to the Libor rigging scandal. The Financial Conduct Authority (FCA), which replaced the Financial Services Authority last year, issued the notices to a unnamed manager at a bank, who the FCA claims condoned traders and submitters to collude and manipulate benchmark rates. The FCA issued the second notice to one of the bank's submitters - also not identified - for allegedly colluding with traders and interdealer brokers to manipulate rates. The case will now go to the FCA's regulatory decisions committee (RDC), an independent body that will hear evidence from the two bankers and decide if the FCA is right to hit them with a penalty. The move marks a change in the FCA's publicity for such cases. Previously it could not reveal a decision notice had been issued until the RDC decided the case. It lobbied for new powers from government to reveal warning notices earlier to show the public it was taking action. There are likely to be more warning notices issued by the FCA in coming months, as investigations by other authorities over Libor come to a head.
Most Popular Stories
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- Some California Cities Seeking Water Independence
- Will Missing Malaysian Jet Prompt Aviation System Change?
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Quiznos Files for Chapter 11
- Obama Seeks to Stay Neutral in CIA-Senate Conflict
- President Obama Touts Overhaul of Overtime Rules