The Treasury Select Committee’s preliminary findings on the LIBOR fixing scandal were released on 18 August 2012. The preliminary report can be read here and the accompanying press release is here.
From the “conclusion and recommendations” of the preliminary report:
On the need for widening the market abuse and criminal regimes to catch benchmark manipulation:
“The Committee urges the Wheatley review to consider the case for amending the present law by widening the meaning of market abuse to include the manipulation, or attempted manipulation, of the LIBOR rate and other survey rates. They should also consider the case for widening the definition of the criminal offence in section 397 of FSMA to include a course of conduct which involves the intention or reckless manipulation of LIBOR and other survey rates.”
On the Financial Services Authority’s shortcomings:
