The news of the fixing of interest rates for lending between banks is hardly surprising given their track record. It is hard to trace a direct link to how it affects everyday finance, which is why the BBC has also bolstered the story with aggressively marketed interest rate fix loans which have turned out to be bad for some small businesses.
There seems to be more of an attitude in government to do something about this, which is refreshing - although may lead to nothing. The injustice is that you would go to prison if this was done in any other line of business - it is after all straight fraud. But somehow we always excuse the banks, because they both help set the rate and also bet on the rate there is an obvious conflict of interest.
I think the individuals involved are probably suffering enough because internally the banks will deal with them. I would like to see a roughing up of the senior management - to remind them they earn those salaries for a good reason, and it is they who set the rules of how business is conducted. They will claim they knew little of the fraud, which maybe brings the charge down to negligence while running a bank.
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