You'll pay for this, David Cameron tells Barclays bosses
Politicians line up to condemn bank in rate fixing scandal
Britain's biggest banks are facing the prospect of criminal investigations, enormous fines and civil lawsuits from customers over the developing scandal of rigging interest rates.
The Prime Minister urged banking regulators to use "all the powers at their disposal" to pursue Barclays after it was fined £290m for manipulating bank lending rates. "This is a scandal. It is extremely serious. They've had a very large fine and quite rightly. But frankly the Barclays management team have some big questions to answer," David Cameron said. "How did this happen? Who was responsible? Who's going to be held accountable for it?"
Arriving at the EU summit in Brussels, he added: "I'm determined we learn all the lessons from what has happened at Barclays. People have to take responsibility for the actions and show how they're going to be accountable for those actions. It's very important that goes all the way to the top of the organisation."
Bob Diamond, the bank's chief executive who earned £17m last year, is under intense pressure to resign over the affair. At the time of the manipulation, which resulted in the alteration of home mortgage rates, he was running the part of Barclays believed to be responsible for the deals, and last night he confirmed he would appear before MPs on the Commons Treasury Select Committee to answer questions.
It has emerged that at least 20 other banks are under investigation including Lloyds, HSBC – which was run at the time by the current Trade minister Lord (Stephen) Green – and the Royal Bank of Scotland, whose chief executive was Fred Goodwin. RBS was reported last night to be facing a £150m fine but offered no comment on the claim. A Treasury source said of banks generally: "What we're hearing is that everybody was at it."
A City firm run by the former Tory treasurer and donor Michael Spencer could also be dragged into the affair, which may extend to brokers and hedge funds.
Icap has suspended one employee and placed two others on administrative leave. Regulators are liaising with the Serious Fraud Office. This could lead to criminal charges.
The scandal has spooked investors, with more than £10bn wiped off the value of British banks.
- 1 Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
- 2 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Cee Lo Green: It is only rape if the victim is conscious
- 5 Katie Hopkins breaks down in tears over weight gain challenge: ‘I hate fat people for making me do this’
Perez Hilton apologises for publishing Jennifer Lawrence naked 4Chan photos
Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
Ariana Grande nude photos leak: Pictures are completely fake, say representatives
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Katie Hopkins breaks down in tears over weight gain challenge: ‘I hate fat people for making me do this’
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
£30000 - £45000 per annum + benefits+bonus+package: Harrington Starr: Front-Of...
£700 per day: Harrington Starr: Quantitative Developer C++, Python, STL, R, PD...
£700 per day: Harrington Starr: Java/Calypso Developer Java, Calypso, J2EE, J...
£500 per day: Harrington Starr: SQL Developer SQL, C#, Stored Procedures, MDX...