LOCAL EURO MP AND EU BANK CHIEF COMMIT TO JOINT ACTION ON LIBOR SCANDAL
Arlene McCarthy MEP, Vice Chair of the European Parliament Economic and Monetary Committee today called for tough sanctions for those involved in interest rate rigging. Arlene, who is the Parliament’s draftswomen on the new EU market abuse rules, raised the issue directly with Michel Barnier, the European Commissioner in charge of financial services, in the Parliament’s Economic and Monetary Affairs Committee this afternoon, said:
“There is no doubt that the Libor scandal is market manipulation of the worst kind. Fines have proved ineffective and have not changed the greedy culture in the banking industry. The penalties for this rogue behaviour must be a custodial sentence. “The EU cannot be seen to be the soft option or a safe haven for perpetrators of market abuse “If the US can conduct criminal investigations with large fines and custodial sentences of up to 14 years then we need to toughen the rules and make it a crime to transmit false information to the market.
“The new European rules should extend the scope to cover manipulation of Libor and Euribor rates Arlene added: “Following a high level meeting with Commissioner Barnier last week, I welcome his personal commitment for a joint Commission-Parliament amendment to close this loophole and toughen the rules to stop those intent on manipulating the market in order to increase their profits and minimize losses at the expense again of the investors or savers.”