Libor Scandal

‘Banks’ bogeyman’

Published on 5 December 2013 at 11:14

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The European Commission on December 4 slapped fines of €1.7bn on six international banks for manipulating the Euribor and Yen-Libor interest rates. Deutsche Bank alone will have to stump up €725m, reports Handelsblatt.

“I know the banks think that is sufficient. But it does not mean that all of the sins of the financial sector will be forgotten,” remarked German Finance Minister Wolfgang Schäuble in an interview with the business daily.

The minister, who may retain his post in the next German government, “wants to press on with the drive for regulation,” explains Handelsblatt. For Schäuble, the responsibility for the triggering of the crisis rests with the financial sector and and not with sovereign states. “That is why regulation cannot stand still [...] The banks have continually shown great creativity in their bid to circumvent regulation. Politicians must remain vigilant.”

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