Main Menu

Government poised to take action

City regulators to get tougher powers to tackle scandals

Mark CarneyThe government and the Bank of England are expected to unveil plans next month for tougher sanctions on City misbehaviour.

Regulators are to be given further powers aimed at forcing those responsible for a series of scandals to face more severe penalties.

It is thought a joint announcement will be made in mid-June by George Osborne, the Chancellor, and Mark Carney (pictured), governor of the Bank of England.

The move will be a response to the latest round of fines handed out to the banks over the manipulation of foreign exchange rates.

Barclays and Royal Bank of Scotland were among six banks fined more than £3.4 billion over the fixing of libor, a key measure in currency dealings.

This was the latest in a series of punishments imposed on the banks, which have included mis-selling of payment protection insurance, regarded as the biggest ever scandal to hit the sector.

There is growing concern that repeated announcements of wrongdoing are damaging public confidence and the reputation of one of Britain’s most important industries.

Sources in the City say the authorities share the public’s dismay that despite the penalties dished out few individuals have been singled out and punished. There is concern that the regulators are limited in the action they can take.


Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.