Lloyds Banking group faces hefty penalty of £226 million
After being fined for rate rigging, the Lloyds Banking Group is facing a huge fine of £226 million raising concern countrywide and losing trust among people.
Following the penalty, a think tank has said that bankers should be given an oath to take just like the one the medical community has in order to get them to follow the ethics of banking. However, there is also a widespread notion that bankers will not take the oath seriously as they are not concerned about following rules.
“In order for us to have the banks we desperately need and the country deserves, bankers must recognise the good, do the good and be good. The bankers’ oath represents a remarkable opportunity to fulfil their proper moral and economic purpose, and finally place bankers on the road to absolution,” said Phillip Blond of ResPublica.
He called the bankers to be transparent about their policies and stick to the rules imposed by the government and have the virtues expected from a banker which was received with skepticism by several people in the industry who believe only a watertight reform will bring about a change in these malpractices.
There were also email conversations between traders and bankers published which show that traders have tried to manipulate bank managers to use rate rigging in their favor which affected the general public.
Even while knowing that they are going against the rules, bankers have conceded with the request of businesses to manipulate the rates and one of them was even laughing about it. A Lloyd’s employee’s email runs, “Oh dear . . . my poor customers . . . hehehe!!”
The rate rigging or Libor scandal was first found two years ago and seven banks have been caught for it since then. However, this is the first time when it is found that businesses are also part of the scandal.