EU to criminalise LIBOR fixing

The European Commission has cracked down on the fixing of interest rates in the latest twist to the LIBOR scandal, which has dominated headlines in recent weeks.

According to an EC statement, the practice of manipulating benchmark rates, including LIBOR and EURIBOR, will now be added to insider dealing as criminal offences, the BBC reported. According to justice commissioner Viviane Reding, the crackdown would put an end to criminal activity in the banking sector. "Public confidence has taken a nosedive with the latest scandals about serious manipulations of lending rates by banks," Reding said. "This is why we are today proposing EU-wide rules to tackle this type of market abuse and close any regulatory loopholes. A swift agreement on thes...