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UK bank scandal must be 'looked into': Pagrotsky

UK bank scandal must be 'looked into': Pagrotsky

Published: 14 Jul 2012 10:06 GMT+02:00
Updated: 14 Jul 2012 10:06 GMT+02:00

The Libor scandal in London may have caused economic damages for Swedish tax-funded businesses, and ought to be looked into, said the Social Democrats’ tax investigator Leif Pagrotsky.

Pagrotsky called the Libor-rate an “international benchmark” with effects spreading far beyond London, reported the newspaper Svenska Dagbladet.

A scandal of Liborgate’s magnitude threatens to affect the public’s confidence in the entire market and the bank system globally, including Swedish banks, he emphasized.

Annika Falkengren, CEO of Swedish bank SEB, is also concerned of what effect the Libor scandal may have on the banking system.

“It’s devastating as a bank manager,” she said to Svenska Dagbladet.

Falkengren was unable to guarantee that interest rate manipulation could not occur in Sweden.

“That’s really hard to guarantee. However, the Swedish Stibor market is far smaller. But it’s in the industry’s interest to help clean up,” she said.

On their own initiative starting a few years ago, Swedish banks have been looking into how to make the Stibor rate, the Swedish equivalent of Libor, more transparent.

The Stibor rate is the interest rate that Swedish banks give each other.

Sweden’s Riksbank recently concluded in its stability report that the Swedish Stibor rate is functioning well, Falkengren noted.

TT/The Local/cg (news@thelocal.se)

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Your comments about this article

13:04 July 14, 2012 by SimonDMontfort
Its good that Swedish politicians keep up the pressure here.

UK Labour MP John Mann has said that the official UK Treasury committee, charged with investigating the Barclays/Libor fiasco will be unable to get to the bottom of the affair.

Now he is talking of starting his own investigation into the shambles and it should be interesting to see how effective the UK opposition parties are
15:59 July 14, 2012 by ontheball
'Falkengren was unable to guarantee that interest rate manipulation could not occur in Sweden.'

Making your excuses in advance then Annika? The Stibor scandal, coming to a Swedish bank near you..
19:04 July 14, 2012 by johan rebel
Yeah right, the entire international banking community is trembling with fear now that a third-rate Swedish socialist politician has spoken out!
17:06 July 16, 2012 by lilsocks
@SimonDMontfort

Of course the Labour party will be able to get to the bottom of the affair as they were the ones in power when it all started!
08:51 July 17, 2012 by SimonDMontfort
...that all depends on whether you believe the Labour party has REALLY changed, after a year or two in opposition
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