City watchdog issues Libor warning notice for two bankers

The new American-run Libor regime came into force today just as the City watchdog launched its first actions against individuals in the rate-setting saga.

The London Interbank Offered Rate was today being set by New York Stock Exchange owner ICE, which beat off the London Stock Exchange and others in a competition to take over the key benchmark from the British Bankers Association last year.

Meanwhile, the Financial Conduct Authority took its first action against individuals, as opposed to companies. The two bank employees have not been publicly named at this stage but were issued warning notices.

One, whose job was to submit his bank’s Libor rate to the BBA, is claimed to have colluded for two years with traders at his own and other banks before deciding what rate to send. The other was a manager, the FCA claimed, at a bank who condoned manipulation.