FCA looks at alleged bond market rigging at Lloyds
The Financial Conduct Authority (FCA) have kicked off a preliminary investigation, looking at whether or not a trader at Lloyds Banking Group attempted to manipulate the market for UK government bonds.
This is bad news for Lloyds, who have been trying to repair their reputation since it was bailed out with over £20bn of taxpayers' money in 2008. As the government try to sell off the last of their stake in the bank, this adds a bit of gloom to proceedings.
All this follows a number of fines which have been handed out across the banking world, over the rigging of interest rates and foreign exchange markets.
Now, the FCA wants information about Lloyds traders who might have tried to bump up profits by driving down the prices of gilts during official auctions, or allegedly inflating their price when selling them on.
This comes after criticisms of the FCA, who said they weren't going to be looking into dodgy banking culture any more, and shouts that everyone's going soft on the banks.
According to Wall Street Journal, who broke this story, this investigation is solely focused on individual traders at Lloyds for the time being, and is not a broader, industrywide probe into the gilt market. Looks like things are going to get ugly in the banking world again.