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.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
2015 General Election
May2015

Poll of Polls

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Tradewind Recruitment: English Teacher

Negotiable: Tradewind Recruitment: This post arises as a result of the need to...

Tradewind Recruitment: Class Teacher Required ASAP In Uminster

£120 - £150 per annum: Tradewind Recruitment: I am recruiting on instruction o...

Ashdown Group: Head of Finance - Financial Director - London - £70,000

£70000 per annum: Ashdown Group: Head of Finance - Financial Controller - Fina...

Ashdown Group: Marketing Executive - Wimbledon, SW London

£24000 - £28000 per annum + benefits: Ashdown Group: Marketing Executive - Wim...

Day In a Page

Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

Greece elections

In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

Holocaust Memorial Day

Nazi victims remembered as spectre of prejudice reappears over Europe
Fortitude and the Arctic attraction: Our fascination with the last great wilderness

Magnetic north

The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness
Homeless Veterans appeal: Homeless in Wales can find inspiration from Daniel’s story

Homeless Veterans appeal

Homeless in Wales can find inspiration from Daniel’s story
Front National family feud? Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks

Front National family feud?

Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks
Pot of gold: tasting the world’s most expensive tea

Pot of gold

Tasting the world’s most expensive tea
10 best wildlife-watching experiences: From hen harriers to porpoises

From hen harriers to porpoises: 10 best wildlife-watching experiences

While many of Britain's birds have flown south for the winter, it's still a great time to get outside for a spot of twitching
Nick Easter: 'I don’t want just to hold tackle bags, I want to be out there'

'I don’t want just to hold tackle bags, I want to be out there'

Nick Easter targeting World Cup place after England recall
DSK, Dodo the Pimp, and the Carlton Hotel

The inside track on France's trial of the year

Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
As provocative now as they ever were

Sarah Kane season

Why her plays are as provocative now as when they were written
Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

Murder of Japanese hostage has grim echoes of another killing

Japanese mood was against what was seen as irresponsible trips to a vicious war zone
Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore