Serious Fraud Office launches Libor investigation

The Serious Fraud Office (SFO) has confirmed that it has formally launched a criminal investigation into the rigging of inter-bank lending rates. Earlier this week, it said it was considering whether prosecutions would be possible. An SFO spokesperson confirmed that a dedicated case team had now started work. Its involvement follows an investigation by US and UK regulators into the manipulation of Libor. That resulted in a record fine for Barclays, who last week agreed to pay £290m in penalties after its traders tried to rig inter-bank lending rates, sometimes working with staff at other financial institutions. Regulators are continuing to look into possible rate manipulation at other banks, while the US Department of Justice is carrying out its own criminal investigations. The SFO would not say whom it is investigating. Its short statement said only: "The SFO Director David Green QC has today decided formally to accept the Libor matter for investigation." Continue reading the main story Serious Fraud Office Independent government agency established in 1988 Deals with complex, high value fraud cases Average length of case is 4-6 years Carries out investigations in England, Wales and Northern Ireland. In Scotland, this is done by the Crown Office's Serious and Organised Crime Division The Libor affair, described by the prime minister as a scandal, has led to the resignation of three of Barclays' most senior executives in a matter of days, including chief executive Bob Diamond. He appeared before MPs on the Treasury Select Committee this week, when he called the behaviour of those responsible for Libor rigging at the bank "reprehensible". Regulators in the UK and the US found that Barclays staff had tried to affect rates over a number of years, first for profit and then to reduce concerns about how much it was being affected by the financial crisis. The SFO is responsible for investigating allegations of serious and complex frauds. It considers whether to prosecute using a number of criteria, including whether it is a matter of public concern, and whether the value of any fraud is more than £1m.