Lloyds Banking Group has sacked eight workers and withheld bonuses in disciplinary measures linked to the Libor interest rate-rigging scandal, the state-rescued lender said on Monday. Earlier this year, Lloyds was fined £218 million ($353 million, 279 million euros) by British and US regulators regarding its submissions to the British Bankers' Association (BBA) London Interbank Offered Rate (Libor) and Sterling Repo Rate.
"Lloyds Banking Group... has taken disciplinary action against certain individuals following the resolutions reached in July with UK and US federal authorities," it said in a statement on Monday. "As a result - and subject to the affected individuals' right to appeal the decisions in accordance with the group's disciplinary policies and procedures - eight individuals have been dismissed."
Lloyds said bonuses and long-term incentives totalling £3.0 million will also be forfeited in accordance with its company policy. A company spokesman told AFP that the eight staff were working on the trading floor and were not part of the senior management. The group added in the statement that it has been unable to take action against a number of individuals who had already left the bank prior to the fine. Lloyds chairman Lord Blackwell said: "The board has been clear that it views the actions of those responsible for the misconduct referred to in the settlements as being completely unacceptable.
"It is entirely right that the group undertook a prompt, independent and thorough disciplinary process immediately after the settlements were announced and has taken appropriate action as a result. A number of individuals have been dismissed." The Libor scandal erupted two years ago when British bank Barclays was fined £290 million by British and US regulators for attempted manipulation of Libor and Euribor - the eurozone equivalent - interbank rates between 2005 and 2009.
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