LIBOR
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of establishing an (a) inquiry and (b) review into (i) the handling of LIBOR manipulation and (ii) the roles of (A) banks, (B) regulators and (C) enforcement bodies.
Answered by Rachel Blake
The Government commissioned the independent Wheatley Review in July 2012 to identify and recommend changes to the regulatory framework in light of the LIBOR scandal. The Government accepted the Review’s recommendations and implemented associated reforms to the regulation and oversight of benchmarks.
Since then, LIBOR has been wound down, reflecting concerns about its reliability. This has been supported by coordinated action across government and regulators, alongside the transition to alternative benchmarks. The Treasury engaged closely with regulators throughout the programme to support the transition away from LIBOR. The transition was successfully completed, with all LIBOR settings having now ceased and no significant market disruption arising as a result.
The investigations and subsequent prosecutions relating to the LIBOR scandal were led by the operationally independent Serious Fraud Office. The Government is not able to comment on the specifics of any individual case, but the Government’s position on financial market abuse is clear: it undermines the integrity of public markets, impairs the effectiveness of financial markets, and reduces public confidence in them.
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