Keywords: LIBOR scandal, bank fines, UK, United Kingdom, USA, United States, enforcement measures, Serious Fraud Office, SFO, individual punishment, banking industry
A drop in the ocean: why record breaking fines are ineffective
In the continuing fallout from the LIBOR scandal, this paper seeks to compare the responses of the UK and the USA. Additionally, the potential for future action is discussed, assessing the options for each jurisdiction. The well documented fines are put into perspective by assessing the financial performances of the punished banks, and are considered to be ineffective in disciplining banks due to the profits they make. Instead, more targeted enforcement measures are needed; aimed at removing offending individuals from the industry.