Govt: 'difficult' to assess consumer impact of LIBOR rigging

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The government has admitted it is ‘difficult' to ascertain the impact of the LIBOR rigging scandal on consumers and whether banks will have to pay out compensation as a result of it.

Following the record fines issued to Barclays for manipulating the inter-bank lending rate, which is used to set credit card and mortgage rates, concerns were raised that consumers may have lost out as a result. In a written question to the chancellor, David Morris MP asked whether the Treasury could estimate the number of individuals potentially affected by the scandal and the prospects for providing them with compensation. Answering on behalf of the chancellor, financial secretary Mark Hoban explained why there was no decision yet on whether there was any consumer detriment. He s...

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