The new regulatory regime for banks and brokers will force senior managers prove they are taking steps to prevent fraud. At least, that’s the theory
This week’s 14-year prison sentence for Tom Hayes, the former UBS and Citigroup trader convicted of conspiracy to defraud, was a landmark moment in the cleanup of the City after the financial crisis.
Hayes’s offence – manipulating the London Inter-Bank Offered Rate, or Libor, to benefit his trading book and thus enlarge his bonus – played no role in any banking collapse. But his systematic attempts to cheat the financial system over a long period were part of a deeply rotten culture, as Mr Justice Cooke made clear in his sentencing remarks.
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Source: The Guardian Circular Economy RSS