Author of a report into the manipulation of the London Inter-Bank Offered Rate (Libor) Martin Wheatley has stated that those responsible for rigging the benchmark rate should face a criminal prosecution.
Mr Wheatley – who is managing director of the Financial Services Authority – told the BBC that the system – which is used to calculate mortgages, credit card loans and other such products all over the world – is broken and needs a complete overhaul.
The financial regulation professional believes the public wants to see the individuals who committed these crimes face the consequences of their actions, with punishments for some including jail in the most serious cases.
Mr Wheatley's calls to reform the Libor include reassigning the British Bankers' Association's responsibilities for setting the rate.
"Society has lost confidence in banks … and we need to restore that," he remarked.
At 11:25 BST, the FTSE 100 index in London was 0.2 per cent higher to 5792.6 points, while the share prices of banks linked to the Libor scandal also rose, with Barclays advancing 0.8 per cent to 219.10p and RBS gaining 0.4 per cent to 257.80p.
Find the latest spread betting strategies for the FTSE 100 at City Index.