You are here: Home - Investing -

FSA’s Bailey tells MPs of ‘culture of gaming’ at Barclays

0
Written by:
17/07/2012
Senior FSA executive Andrew Bailey has accused Barclays of operating with a “culture of gaming” which came from top of the bank.

Giving evidence to the Treasury Select Committee on the LIBOR fixing scandal, the head of the Financial Services Authority’s (FSA) bank supervision arm (pictured) said the watchdog had had serious concerns about Barclays’ investment banking operations.

“There was a culture of gaming, and gaming us. It had to change. We drew the conclusion that there was a problem with this institution.

“You could not escape the conclusion that the culture of this institution was coming from the top.” Asked by MPs if this referred to Bob Diamond, Bailey replied: “Yes.”

He also said former Barclays CEO Bob Diamond had given “highly selective” testimony when he appeared before the committee. It is possible the TSC will recall Diamond for further questioning.

Meanwhile the FSA confirmed it is investigating seven other financial institutions over LIBOR, not all of which are UK banks. The head of the FSA, Lord Turner, was asked if the abuse of LIBOR was just the tip of the iceberg. He replied:”We don’t know… but I would be amazed if this was everything.”

Earlier in the session, former Barclays COO Jerry del Missier had given evidence which contradicted that of Diamond.

He told MPs Bob Diamond instructed him to lower the bank’s LIBOR submissions, on the orders of the Bank of England’s deputy governor Paul Tucker.

“Mr Diamond told me Mr Tucker had given the instruction,” del Missier told MPs.

Asked by Andrew Tyrie whether he knew his actions were illegal, the former COO said: “It did not seem inappropriate given that it [the instruction] had come from the Bank of England.”

Del Missier also implicated other senior bank staff in the scandal by telling the committee he reported the request to ‘lowball’ LIBOR to Barclays’ compliance department, which did not act on the information.

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2192104-hsbc-sign1
HSBC used for Mexican drug money, says report

Inadequate controls at HSBC allowed it to be used to launder suspicious money from around the world, including Mexican drug...

Close