The Libor rate-fixing should have been stopped by the FSA

I fail to understand the Financial Service Authority’s impotence with respect to the Barclays Libor scandal (report, July 2). It may very well be true that Libor is not regulated, and that the FSA couldn’t prosecute in this instance.

However, this current scandal breached the FSA principles for business, which both Barclays as a group and Bob Diamond, as a member of the bank’s executive commitee, are required to follow. As such, the FSA had the power to immediately declare that Bob Diamond is no longer a fit and proper person to hold a controlling function, and remove his ability to operate in the British financial services industry.

The FSA takes this type of action every week against individuals and small businesses for misdemeanours which, while wrong, in no way injure the country to the same degree as Barclays has. There must be a judicial enquiry – only then can we restore confidence in the financial services industry.

Bob Cook

The Daily Telegraph