The Financial Services Authority (FSA), has denied that it was too slow to act in investigating and putting a stop to manipulation of Libor lending rates.
The FSA’s function is to regulate the UK financial service industry, reducing financial crime and maintaining confidence and stability in the financial system. It has hit back at accusations from the Treasury select committee’s preliminary report in which it was suggested that it did not pick up on early warning signs and that it was two years behind the US authorities.
‘We were aware of and engaged with the enquiries made by the US regulatory authorities during 2008 and 2009 and provided assistance to the CFTC from the outset of its investigation, by obtaining documents and information from Barclays.’ the FSA said.
Whilst the FSA denied all criticisms, it did add that ‘there may be merit in considering further the scope of the Financial Conduct Authority’s (FCA) powers in the future’.
Find out more about the Libor scandal in Banking news.