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Bank of England Governor Mark Carney says the “age of irresponsibility” in the City of London is over

OWoN: At tonight's Mansion House speech, Mark Carney will lay out the new rules:

  • Crooked Bankers, rig the markets and we will give you 10 years in jail.
  • Crooked Bankers, commit Fraud and we will give you 10 years plus in jail.
  • Crooked Bankers, what the hell, we are coming after you anyway. The game is up and your going down.

The 'age of irresponsibility is over' says Bank of England head as he promises crackdown on rogue traders

Governor Mark Carney says the “age of irresponsibility” in the City of London is over

The Telegraph
By James Titcomb
10 June 2015

Mark Carney has declared that the “age of irresponsibility” in the City of London is over as the Bank of England promised a crackdown on rogue traders.

In a speech on Wednesday evening, the Bank of England Governor will say that banks, regulators and individuals had collectively failed to prevent the market rigging that has led to bank fines worth billions of pounds.

The Bank published the Governor's speech as it recommended tougher rules for the City and longer jail sentences for those who attempt to manipulate markets.

Regulators have been under pressure to clean up the finance industry in the wake of the Libor and foreign exchange scandals, for which banks and other companies have been fines billions of pounds.

On Wednesday, the Bank released the recommendations of its “Fair and Effective Markets Review”, a year-long probe into financial markets.

It recommended:
  • Increasing the maximum jail sentence for market abuse from seven to 10 years.
  • Extending the range of financial markets that will carry prison sentences if they are rigged, to include products such as interest rate swaps, certain derivatives and spot FX markets.
  • Making more businesses, such as interdealer brokers, hedge funds and asset managers, subject to the senior managers’ regime (SMR), a new set of rules that will force top executives to bear responsibility for misconduct or face fines and other punishments.
  • Creating a new “market standards board” led by the industry to put together a standards for financial markets.
  • Regulating how finance companies fill out employee references, so that traders who were fired or failed to live up to banking standards cannot simply move between banks and other institutions.

“The age of irresponsibility is over,” Mr Carney will say at tonight’s Mansion House speech.

"Though markets can be powerful drivers of prosperity, markets can go wrong. Left unattended, they are prone to instability, excess and abuse.

“Markets are not ends in themselves, but powerful means for prosperity and security for all. As such they need to retain the consent of society - a social licence - to be allowed to operate, innovate and grow.

“Repeated episodes of misconduct have called that social licence into question. We have all been let down by these developments. And we all share responsibility for fixing them.”

The recommendations, which must be introduced by the Government, are designed to ensure that bad apples in the finance industry are rooted out and punished, and that senior individuals are held responsible.

Few individuals and even fewer City bosses have been personally sanctioned for the widespread rigging of markets in recent years, despite the massive fines for Libor and foreign exchange rigging.

The scandals have dented the reputation of London, which Mr Carney will call “the leading global financial centre”.

He will pledge that senior Bank officials, including the Governor himself, will live up to the SMR, a regime that can fine senior individuals or ban them from working in the sector.

The Fair and Effective Markets Review was a joint effort between the Bank of England, the Financial Conduct Authority and the Treasury, which was ordered last year.

George Osborne will say in a Mansion House speech on Wednesday evening: “The Governor and I agree: individuals who fraudulently manipulate markets and commit financial crime should be treated like the criminals they are - and they will be.”

John Griffith-Jones, the FCA’s chairman, said: “Putting conduct and accountability at the heart of these vital global markets will safeguard their future integrity, and the UK’s pre-eminent position in them.”

The Bank said it would monitor how the review is being implemented in a year’s time.



  1. Note clearly crooked Bankers, do the crime in the UK and do the time to follow. But remember, under our Laws we DO seize all proceeds of crime so when you come out you start with nothing. And prohibited from ever working in finance again

  2. The words of Mark Carney did sound good. I just hope the execution is solid as that is generally the issue when markets are rigged. The jail sentence might be fifty years, but if nobody is prosecuted like in the United States, then even 10 minutes of jail time for bankers is at least a good start. In Asia often enough nowadays those who commit large scale frauds are sentenced to death. That definitely sends a message. Not that it needs to be that, but serious penalties that are followed up upon are definitely necessary.

  3. Saturnalia,
    Jailing will come in now. We already have test cases lined up and will process them. Unlike the US we do have Constitutional integrity and authority. Also we recognise the need to deal with them now. Judges especially will love jailing Bankers. It wont be 10 minutes, 10 years is our benchmark to leave Judges no wriggle room. Guilty and do the time plus seizure of all assets worldwide. 10 years and unemployable for life ever again in finance. Here, under the FSA, get judged guilty once and your license has gone. 10 years is the start point. Some will be higher.


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