Watchdog defends hefty fines for rate-rigging banks

Stiffer fines for banks caught rigging markets have not undermined financial stability or the solvency of lenders, a senior British regulator said yesterday.

Georgina Philippou, acting director of enforcement at the Financial Conduct Authority (FCA), dismissed criticisms that recent penalties amounting to billions of pounds were damaging the stability of the industry.

The FCA has been levying record amounts of fines, saying previous sanctions failed to impact. “We don’t consider that fines in the UK are anywhere near that level,” Philippou said.