In response to the Prime Minister announcing a parliamentary inquiry into the LIBOR rates-fixing scandal.
Which? Chief Executive Peter Vicary-Smith said:
“We need full disclosure of rates-fixing, how widespread it was, who was involved, and importantly how consumers have been affected. However, we do not want the inquiry to hold up reform – there must be no excuses, no further delay in taking action to fix our broken banking system.
“The public rightly deserve an answer as soon as possible as to whether retail banking customers lost money because of the rates-rigging. Serious questions must be asked of Barclays bosses this week, and of all banks, and the regulator, if there is any hope of restoring consumer confidence in the banking industry in the future.”
Which? wants the following key questions to be answered by the banks, the regulator, and the Government.
- Did retail banking customers lose money because of LIBOR rigging? If yes, how and when will they get compensation?
- What internal inquiries have been conducted to determine the extent of LIBOR rigging and the impact on customers? Will the internal investigations be made available to the parliamentary inquiry?
- How will those responsible be held to account for their actions?
- Are the traders who were involved still working at Barclays? Will all bonuses be clawed back, including from senior executives and traders?
- What was the involvement of the Bank of England in rates-fixing? Can consumers have complete confidence in the Bank of England?
- Will the Financial Services Authority (FSA) review the amount of fines to banks? How will the money be used in the future?
- Is the British Bankers Association (BBA) fit for purpose? What did the BBA know about the manipulation of LIBOR? Should the BBA be scrapped?
- Will the Government fast-track the urgent reforms that are needed in the banking industry, including ring-fencing the retail banks from the casino banks?