Fines include £105 million: Lloyds

Posted by | July 28, 2014 | News

The fines include a £105 million fine from the Financial Conduct Authority, a $105 million (£88 million) U.S. Commodity Futures Trading Commission and an $86 million (£50 million) fine by the U.S. Department of Justice.

Lloyds‘ misconduct also related to the benchmark rates of the special liquidity scheme (SLS) and the repo rate benchmark, said the FCA.

The regulator said in its final notice that £70 million of the fine relates to attempts to manipulate the fees payable to the Bank of England for the firms’ participation in the SLS, a taxpayer-backed government scheme designed to support the UK’s banks during the financial crisis.

Tracey McDermott, the FCA’s director of enforcement and financial crime, said the firms were a ‘significant beneficiary’ of financial assistance from the Bank of England through the scheme.

‘Colluding to benefit the firms at the expense, ultimately, of the UK taxpayer was unacceptable.  This falls well short of the standards the FCA and the market is entitled to expect from regulated firms.