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| Lloyds fined £218m over Libor rigging scandal | Lloyds fined £218m over Libor rigging scandal |
| (35 minutes later) | |
| Lloyds Banking Group has been fined £218m for "serious misconduct" over some key interest rates set in London. | Lloyds Banking Group has been fined £218m for "serious misconduct" over some key interest rates set in London. |
| The fines were issued by the UK-based Financial Conduct Authority (FCA) and a US-based trading commission. | The fines were issued by the UK-based Financial Conduct Authority (FCA) and a US-based trading commission. |
| Lloyds manipulated the London interbank offered rate (Libor) for yen and sterling and attempted to manipulate the rate for yen, sterling and the US dollar, said the US legal order. | Lloyds manipulated the London interbank offered rate (Libor) for yen and sterling and attempted to manipulate the rate for yen, sterling and the US dollar, said the US legal order. |
| Lloyds said it "condemns the actions of the individuals responsible". | Lloyds said it "condemns the actions of the individuals responsible". |
| The FCA fined Lloyds £105m. It said the fine was the "joint third-highest ever imposed" by the organisation or its predecessor, the Financial Services Authority. | The FCA fined Lloyds £105m. It said the fine was the "joint third-highest ever imposed" by the organisation or its predecessor, the Financial Services Authority. |
| Misconduct unparalleled | |
| In the US, the Commodity and Futures Trading Commission fined the group, which is responsible for Lloyds Bank and the Bank of Scotland, $105m (£61.7m). | In the US, the Commodity and Futures Trading Commission fined the group, which is responsible for Lloyds Bank and the Bank of Scotland, $105m (£61.7m). |
| The agreement is the seventh joint penalty handed out by US and UK regulators in connection with Libor and other benchmarks, used to price around $450trn of financial products around the world. | The agreement is the seventh joint penalty handed out by US and UK regulators in connection with Libor and other benchmarks, used to price around $450trn of financial products around the world. |
| Barclays and the Royal Bank of Scotland have previously paid $453m and $612m in fines related to the scandal. | Barclays and the Royal Bank of Scotland have previously paid $453m and $612m in fines related to the scandal. |
| Part of the FCA's fine for Lloyds, was for serious misconduct over a programme introduced during the financial crisis known as the special liquidity scheme (SLS). | |
| The SLS was set up in 2008 by the Bank of England to let banks temporarily swap assets that were difficult to trade. | |
| Lloyds also manipulated the Repo rate benchmark, which is the interest rate that the Bank of England uses to buy back government securities from commercial banks, said the FCA. | |
| Lessons for rivals | |
| In a statement, the watchdog said the "manipulation of the repo rate benchmark in order to reduce the firms' SLS fees" was misconduct of a type "not seen in previous Libor cases". | |
| Tracey McDermott, the FCA's director of enforcement and financial crime, said that Lloyds and Bank of Scotland were a "significant beneficiary" of financial assistance from the Bank of England through the SLS. | |
| "Colluding to benefit the firms at the expense, ultimately, of the UK taxpayer was unacceptable. | |
| "This falls well short of the standards the FCA and the market is entitled to expect from regulated firms," she said. | |
| She said other banks needed to learn lessons from and avoid the mistakes of their peers for trust to be restored in financial services. |