The Lloyds Banking Group has announced that following disciplinary procedures eight employees have been dismissed. Lloyds’ press release can be found here:
Confirmation of Disciplinary action following legacy Libor and BBA Repo Rate Solutions
It is not particularly detailed.
In line with Lloyds Banking Group’s practices the Group has withheld £3 million in bonuses and long-term pay awards that have not yet been taken by the employees. The Government has recently announced plans to change the rules so that bonuses can more easily
be “clawed back” from employees in situations such as this.
Lloyds confirmed that it has been unable to take action against a number of employees who no longer work for them.
What does this mean?
It shows that Lloyds is starting to take stock and address some of the issues that arose over the past decade. In December 2013 Lloyds was fined by the
Financial Conduct Authority over the manner in which it remunerated employees between 2010 and 2012. It was alleged that the Bank had failed to have systems and controls in place with which to identify if an employee’s
bonus offers were causing those employees to inappropriately sell products to customers. In July 2014 Lloyds and Bank of Scotland were fined as a result of the manipulation of LIBOR and another benchmark. On that occasion they were fined by the UK regulator,
the US regulator and the US Department of Justice.
Lloyds was also a member of a group of banks that were fined by the EU for acting as a cartel and influencing the European LIBOR rate, EURIBOR, through the cartel.
LIBOR rigging explained
Berg have put together a 3 part blog detailing how the “LIBOR Rigging” findings in July 2014 impact commercial customers.
Read part one of our blog series ‘Libor Rigging: What is it?’ here
For more information about any of the above or for practical advice on this or any other aspect of banking and financial disputes, please contact Kalvin Chapman of the
Berg Banking Litigation Team on 0161 829 2599 or email him at
(The information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Berg or any of its partners or employees. Professional legal advice should
be obtained before taking, or refraining from taking, any action as a result of this article.)