Much furore about Barclays’ fraudulent manipulation of the interbank lending rate and the £300m fine. What is much less publicised is what happens to the fine. Apparently, it goes into the FSA’s coffers. Fair enough, you might say. Except that the banks and other financial institutions are liable for the FSA’s bills. So the net effect is that the fine reduces the bank’s indebtedness to the FSA i.e. they take it with one hand and give it back with the other. Does that seem an appropriate punishment for dishonesty on a global scale? I think not.
Bankers
29 Friday Jun 2012
