INVESTIGATORS at the Serious Fraud Office (SFO) considered launching an investigation into abuse of the Libor interest last September but decided against it due to a lack of funds, it was claimed yesterday.
Former SFO director Richard Alderman took the decision, allegedly citing overstretched resources at the anti-fraud agency.
This left the Financial Services Authority (FSA) to pursue the case on its own.
The FSA and SFO are now reconsidering whether there is a criminal case to answer.
The SFO’s budget has been cut from £52m in the 2008-09 financial year to £32m this year.