Lloyds fires 8 over Libor scandal

The skeletons just keep coming, as the part taxpayer-owned bank gets rid of staff.

by Rachel Savage
Last Updated: 04 Aug 2015

Lloyds has fired eight staff in relation to the Libor-rigging scandal, in a sign banks have yet more skeletons in the closet following the financial crisis, but are doing their level best to shake ‘em all out.

The bank, which is 25% owned by the taxpayer was fined a total of £225m by UK and US regulators in July for manipulating Libor and the rate it paid to the government for accessing the emergency Special Liquidity scheme during the financial crisis.

The eight staff, who weren’t named by Lloyds, are also forfeiting £3m in unvested bonuses, although they can appeal their firing. The bank said it hadn’t been able to take action against staff who had already left, but it had ‘shared all relevant information with the FCA and other relevant authorities’.

‘Having now taken disciplinary action against those individuals responsible for the totally unacceptable behaviour identified by the regulators’ investigations, the Board and the Group’s management team are committed to preventing this type of behaviour happening again,’ chief exec António Horta-Osório said in a statement.

In July, Bank of England governor Mark Carney said the Libor rigging was ‘highly reprehensible’ and may lead to criminal action against individuals involved. If so, and that included against former or current Lloyds employees, that would mean even more embarrassment for the bank, despite the sackings.

It now just has to keep on with looking decisive and disgusted, even though the fallout from the scandal could be far from over.

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