Libor fix: Three arrested

p35 LONDON, ENGLAND - DECEMBER 09: City workers walk across London Bridge on their commute to the financial district on December 9, 2009 in London, England. Chancellor of the Exchequer, Alistair Darling, is expected to announce new tax measures on bankers' bonuses in his Pre-Budget Report to Parliament today.

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11 December 2012

The first arrests for alleged Libor rigging took place in London today.

The Serious Fraud Office along with City of London Police carried out searches at two homes in Essex and one in Surrey.

Three men, aged 33, 41 and 47, were arrested and taken to London police station for questioning in connection with the ongoing investigation into Libor manipulation. All three are British.

Barclays bank has already been fined £290 million for Libor rigging in a move that cost former chief executive Bob Diamond his job.

Royal Bank of Scotland and HSBC are also being investigated over allegations of fixing the key interest rate, which is used to set some $360 trillion of financial instruments every day.

It was recently reported that police were planning to arrest traders from RBS, Barclays and UBS over the Libor scandal. All the banks have said they have either sacked or suspended a number of staff.

The Serious Fraud Office has devoted at least 40 staff to the investigation over the last few months.

“Significant developments” in the case are coming “in the near future,” David Green, head of the SFO, said earlier this month.

The Government recently proposed legislation to bring Libor under financial regulators and to make its rigging a criminal offence.