BoE says fines tally for banks makes its work harder
LONDON, July 10
LONDON, July 10 (Reuters) - Growing fines for banks for misconduct is making it harder for regulators to work out how much capital lenders should be holding, Bank of England Deputy Governor Andrew Bailey said on Thursday.
Bailey said regulators such as the BoE have to look at the direction of travel of fines, particularly in the United States, to see what potential fines are in the pipeline.
Banks have been fined millions of pounds for rigging the Libor interest rate benchmark and allegations are now emerging that the foreign exchange market has been manipulated as well.
"This is a considerable dent in rebuilding bank capital," Bailey told a Bloomberg event.
"So far this has not caused a major financial stability issue. These are things on a scale that have to be handled very closely to deal with the issues around them." (Reporting by Huw Jones; editing by Jason Neely)