FSA publishes report on LIBOR submissions
The Financial Services Authority (FSA) has published its Internal Audit Report ( the Report) on the London Interbank Offered Rate (LIBOR). The FSA has recently taken enforcement action against Barclays Bank plc (Barclays), UBS AG (UBS) and Royal Bank of Scotland plc (RBS) for failures in respect of LIBOR submissions. Following the announcement of the Barclays' fine, Barclays disclosed to the Treasury Committee 13 instances of communication between Barclays and the FSA which raised the question of whether the authorities ought to have been aware that firms might be making inappropriate LIBOR submissions in order to avoid negative media comment (lowballing). The chairman of the FSA, Adair Turner, therefore asked the FSA's Internal Audit to identify any other such communications from any firm or from media reports or other information sources.