‘Banks haven’t learned lessons from Libor’

Banks are failing to meet new standards for compiling market benchmarks despite the record fines imposed over the Libor and foreign exchange scandals, a review by Britain’s financial watchdog has said.

Lenders have been fined billions of dollars by regulators for attempting to rig the London interbank offered rate, or Libor, an interest rate benchmark used to price an estimated $450 trillion of financial contracts worldwide.

The scandal triggered a regulatory overhaul of how benchmarks are compiled, but the review by the Financial Conduct Authority found that banks and brokers were not applying the new standards in full.