Scots bankers may face criminal charges after Crown Office probe

UK Political Correspondent

Wednesday 4 July 2012

Scottish bankers could face criminal charges it emerged yesterday, as the crisis surrounding the industry deepened.

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Kate Devlin UK Political Correspondent

Prosecutors confirmed they were investigating the Scottish banking industry and the Crown Office announced plans to extend the inquiry in response to allegations of wrongdoing within the industry in recent days.

The developments came after the Serious Fraud Office (SFO) said this week it had launched its own investigation.

The SFO is expected to announce within weeks whether it plans to pursue prosecutions in relation to rigging of a key interest rate, the Libor rate.There had been concerns that bankers accused of corrupt behaviour might escape prosecution.The Coalition Government announced an urgent reassessment of the law last week after it emerged that manipulation of the Libor rate was not a specific criminal offence. Last night, the Crown Office confirmed the Serious and Organised Crime Division, which has an economic crime unit, was leading the probe.A spokesman said the investigation into the Scottish banking sector had been ongoing for some time. But prosecutors said they had decided to confirm the existence of the investigation in light of public concern. The Crown Office also said the scope of the investigation would be widened as a result of "recent developments".A spokesman said: "This is not a response to any one incident or complaint, but we want to make the public aware that we are investigating the banking sector". Politicians welcomed the investigation. Scottish Conservative Chief Whip John Lamont said: "The Serious and Organised Crime Division is quite properly investigating whether any wrong-doing has occurred within the Scottish banking sector and if criminal prosecutions can be brought."Labour's Cathy Jamieson, Shadow Treasury Minister, said: "It is appropriate that the Crown Office has confirmed that such an investigation is on-going, but this does not distract from the need for a judge-led, independent inquiry. "This is about much more than the misdemeanours of individual bankers who may be subject to criminal investigation. "It is about the culture and practices of the banking industry, and we need to get to the bottom of these practices and make recommendations for change in the future."The SFO said that it hoped to say within a month whether or not it would bring any criminal prosecutions in relation to the rigging of the interbank lending rate. In addition to the Libor scandal, the City watchdog, the Financial Services Authority (FSA) said last week that it had it found "serious failings" in the sale of complex financial products to small businesses.Barclays, HSBC, Lloyds and Royal Bank of Scotland agreed to compensate customers where the mis-selling of so-called interest rate swap arrangements has occurred, the FSA said.

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Scots bankers may face criminal charges after Crown Office probe

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