Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

24 September 2012

Bloomberg: Libor scandal shows need for EU Market Abuse Law, says Barnier


EU regulators are also investigating possible breaches in cartel rules from both banks and brokers in the setting of Libor, Joaquin Almunia, the EU's competition commissioner, said in his testimony to the European Parliament.

 “The only thing that’s not possible is self-regulation or the status quo”, Barnier said.

The parliament’s economic and monetary affairs committee is preparing to vote on October 8 to boost the bloc’s sanctions against market abuse, including jail sentences for bank staff found guilty of collusion to fix interbank lending rates. 

The cartel probes will end as soon as possible, Almunia said, and will result in hefty fines if antitrust violations are proven. “We can imagine in this case we are not talking about €10 -- it is a big amount.” “I’m referring to banks, but also in some cases to brokers”, he said. Fines may be increased to take into account the “gravity” of the behavior in the cases, he added.

Dan Doctoroff, chief executive officer of Bloomberg LP, also spoke at the EU parliament event. Doctoroff proposed a new benchmark using data from a variety of financial transactions, including credit default swaps, which would “better reflect participating banks’ real cost of credit”.

Full article



© Bloomberg


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment