Bailout rigging probe may lead to hefty penalties from financial regulator

Banks could be hit with more huge fines after a Serious Fraud Office investigation into whether Government bailout deals were rigged. They may have abused a 2007 and 2008 Bank of England rescue scheme, it emerged last week. The SFO is investigating, but the banks could also face hefty financial penalties from the City regulator when the SFO inquiry ends. The Financial Conduct Authority will not investigate until the SFO has concluded its criminal investigation. While the activities being considered are not thought to be formally regulated, the FCA is expected to enforce general principles of good conduct. So, even if the SFO does not find any grounds for a prosecution, it may still impose fines.....Read more here