Brussels to act over LIBOR scandal

Brussels is proposing new rules to prevent the manipulation of LIBOR as part of a crackdown in the wake of the rate-fixing scandal.

Michel Barnier, the EU commissioner overseeing financial services, is understood to be drawing up a list of new rules which specifically cover tampering with indices such as EURIBOR and LIBOR, the FT reports. The plans would create specific criminal sanctions for those that broke the rules, although many of the traders involved in the current scandal are understood to be facing the possibility of criminal proceedings already. The main part of the plans is to close loopholes which may have made it more easy to manipulate the inter-bank lending rate. The proposals would likely get th...