EU Announces Fines for Libor Manipulation

The European Union has approved a law that will bring huge fines to bear on companies found guilty of manipulation the Libor, the London Interbank Offered Rate. The new law was approved by the political body’s parliament earlier today and will come into force in the next two years.

The new law makes manipulation of the benchmark interest rates in the European Union illegal and makes the crime punishable by a fine of up to 15 percent of turnover. Individuals charged with manipulating the base interest rates can be fined by up to 5 million euro, and they...