The Libor specter has once again returned to Lloyds Banking Group Plc, culminating in the dismissal of eight employees and a dramatic reduction of bonuses after the FCA found that seven managers were guilty of misconduct.
Lloyds has spent the better part of a year reconciling its involvement in Libor manipulation, which seemingly extended to every major institutional bank worldwide. Following a bevy of record fines, many of these players, including Lloyds, restructured its compliance departments and personnel.
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Back at the end of July, the UK’s Financial Conduct Authority (FCA) found that seven managers, and in total sixteen individuals at Lloyds were directly involved or aware of the Libor misconduct – the bank has recently been fined $367 million for rigging benchmark rates.
According to Lloyds Chairman Norman Blackwell, “The group undertook a prompt, independent and thorough disciplinary process immediately after the settlements were announced. Significant reputational damage and financial cost to the group are fully and fairly reflected in the options considered in relation to other staff bonus payments.”