Barclays has been slapped with the largest-ever fine by the Financial Services Authority (FSA) and a huge penalty by the US authorities after it breached rules regarding LIBOR.
The FSA fined the bank £59.5m for significant failings in relation to LIBOR and EURIBOR, after it sought to profit from the settlement process.
The FSA said Barclays made submissions which formed part of the LIBOR and EURIBOR setting process that took into account requests from Barclays' interest rate derivatives traders. These traders were motivated by profit and sought to benefit Barclays' trading positions.
It also sought to influence the EURIBOR submissions of other banks contributing to the rate setting process.
Barclays qualified for a 30% discount under the FSA's settlement discount scheme, after working with the FSA. Without the discount the fine would have been £85m.
In addition Barclays has agreed to pay a fine of $360m to US authorities for the same offences.
The US Commodity Futures Trading Commission brought attempted manipulation and false reporting charges against Barclays for similar failings, which the bank agreed to settle, with the CFTC imposed a penalty of US$200m.
In addition, as part of an agreement with the US Department of Justice, Barclays admitted to its misconduct and agreed to pay a penalty of US$160m.
Barclays said chief executive Bob Diamond and other senior executives would forego their annual bonuses for 2012 as a result of the fines.
"To reflect our collective responsibility as leaders, Chris Lucas, Jerry del Missier, Rich Ricci and I have voluntarily agreed with the board to forgo any consideration for an annual bonus this year," Diamond said in a statement.
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