Confirmation of Disciplinary action following legacy Libor and BBA Repo Rate Solutions
29 September 2014
Lloyds Banking Group (the Group) has taken disciplinary action against certain individuals following the resolutions reached in July with UK and US federal authorities regarding attempts to manipulate certain submissions to the British Bankers’ Association (BBA) London Interbank Offered Rate (LIBOR) and Sterling Repo Rate between 2006 and 2009. 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.
Awarded but unvested bonuses and long term incentives totalling approximately £3 million in aggregate for the individuals who have been dismissed will be forfeited in accordance with the Group’s standard practice.
The Group was unable to take any disciplinary action against a number of individuals who had already left the Group prior to the settlements.
As it has throughout the investigation leading up to resolutions announced on 28 July 2014, the Group has shared all relevant information with the FCA and other relevant authorities, including the outcome of the disciplinary process.
Lord Blackwell, Lloyds Banking Group’s Chairman, 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. In addition, the Remuneration Committee is tasked with ensuring that the outcome of the disciplinary process and the significant reputational damage and financial cost to the group are fully and fairly reflected in the options considered in relation to other staff bonus payments.”
António Horta-Osório, Chief Executive of Lloyds Banking Group, said:
“Having now taken disciplinary action against those individuals responsible for the totally unacceptable behaviour identified by the regulators’ investigations, the Board and the Group’s management team are committed to preventing this type of behaviour happening again. The changes we have implemented over the last three years as part of our successful customer-focused and UK-centric strategy have created a culture and values that focus totally on our retail and commercial customers. We are determined to make Lloyds Banking Group a company of the highest integrity and standards.”
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