Serious Fraud Office can send Libor-fixers to prison!
Hands up if you want to see some bankers thrown in jail? Well, you're in luck because it could well be happening thanks to the Serious Fraud Office confirming that they're 'satisfied' that existing laws can cover manipulation of interest rates.
The announcement, made by SFO director David Green QC, means that traders could well end up thrown in the clink... for 10 years! Crivens. It's all getting a bit serious now.
In a statement the SFO said it was 'satisfied that existing criminal offences are capable of covering conduct in relation to the alleged manipulation of Libor and related interest rates'.
Eight financial institutions are being investigated by the Financial Services Authority and the SFO is also looking at a number people. The government want a fast turnaround on it too.
RBS chief, Stephen Hester said his bank were being investigated by the FSA over their role in attempting to manipulate borrowing rates, adding: "RBS is one of the banks tied-up in Libor. We'll have our day in that particular spotlight as well. Even though when all the Libor (fines) are out most of it is going to be around the wrongdoings of a handful of people at a number of banks. Those wrongdoings taint the whole industry beyond the handful of people and that makes it a huge problem."