THE FINANCIAL Services Authority (FSA) is reviewing how wholesale markets are supervised following the interest rate-setting scandal, its chairman Adair Turner said yesterday.
“There are no free lunches, and shoddy wholesale practice is not a victimless act, even in those cases where it is not defined as a crime,” Turner told the watchdog’s final annual meeting before being dismantled.
The FSA was criticised for not bringing criminal charges against Barclays or its traders who rigged the London Interbank Offered Rate (Libor) and is expected to be given new powers.
The FSA will publish the outcome of its review in the autumn.
Turner said the Libor scandal is a huge blow to the reputation of the banking industry.
“The cynical greed of traders asking their colleagues to falsify their Libor submissions so that they could make bigger profits - has justifiably shocked and angered people, in particular when we are facing hard economic times provoked by the financial crisis,” Turner said.
City A.M. Reporter