The City watchdog has today shut down an investigation into possible bond manipulation by a Lloyds Banking Group trader.
In late 2015, The Financial Conduct Authority (FCA) launched an investigation into whether Tony Gray, head of gilts trading at the bank, had rigged the UK government bond market but has now decided there is no case for him to answer on the evidence available.
According to the Financial Times, Gray was placed on leave from his role for three months, but has already been reinstated, and the bank has already concluded its own internal inquiries. Lloyds is also said to have cooperated with the FCA in its investigation.
Sara George, partner at Stephenson Harwood who acted on behalf of Gray, said: "The investigation into Mr Gray has been concluded with no further action being taken."
Both the FCA and Lloyds declined to comment.
The watchdog was only ever focused on Gray's supposed activities and the probe did not concern the taxpayer-backed bank in general.