FSA was warned over LIBOR as early as 2008

The FSA was aware that LIBOR rigging could pose a ‘significant issue' to the UK's banking system as early as 2008, an internal report has shown.

The Financial Services Authority has admitted it was slow to respond to information provided by banks, and warnings from its own staff, that highlighted the dangers of LIBOR manipulation. A series of documents revealed by the FSA have confirmed a number of warnings it received prior to the scandal becoming public. In one warning, the compliance officer of a small bank emailed the FSA stating: "It appears to us that something is wrong when a panel of contributor banks is supplying LIBOR at below what the banks can achieve in the market. It may be worth the FSA investigating to see if t...