Extracts from the joint press conference by Viviane Reding and Michel Barnier on the EC's proposal to amend proposals on market abuse
Type: Summary of press conference
End production: 25/07/2012 First transmission: 25/07/2012
On 25 July 2012, Michel Barnier, Member of the EC in charge of Internal Market and Services, and Viviane Reding, Vice-President of the EC in charge of Justice, Fundamental Rights and Citizenship, presented EU-wide action to fight rate-fixing, at the European Commission, in Brussels.
In the recent LIBOR scandal, serious concerns have been raised about false submissions of banks' estimated interbank lending rates. Any actual or attempted manipulation of such key benchmarks can have a serious impact on market integrity, and could result in significant losses to consumers and investors, or distort the real economy.
On that date, the European Commission acted to address this kind of market manipulation, by adopting amendments to the proposals for a Regulation and a Directive on insider dealing and market manipulation, including criminal sanctions, initially tabled on 20 October 2011. These amendments will clearly prohibit the manipulation of benchmarks, including LIBOR and EURIBOR, and make such manipulation a criminal offence.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Michel Barnier, Member of the EC in charge of Internal Market and Services, and of Viviane Reding, Vice-President of the EC in charge of Justice, Fundamental Rights and Citizenship, to the joint press conference on market abuse, in Brussels
||Soundbite by Michel Barnier (in FRENCH) saying that for the past few weeks, the LIBOR case as been clearly revealing manipulation of inter-bank lending rates. Behind this manipulation, there was a total lack of any moral values, a scandalous behaviour from a number of financial actors to the detriment of citizens, companies and public authorities. The European Commission feels that such behaviour should be sanctioned without any excuse. That is why the supervisors in all EU Member States should be able to identify, diagnose and analyse these manipulations. At the same time, judges must be capable to have all means to punish them without complaisance, even in the most serious cases, by prison sentences.
||Cutaways of press (2 shots)
||Soundbite by Michel Barnier (in FRENCH) saying that the European Commission is going to check all of these indexes, including EURIBOR and others, and see how to provide a seat of rules for something which is now self-regulated, and some type of public sectors' surveillance. The Commission wants to provide guarantees to consumers and investors.
||Cutaway of press
||Soundbite by Viviane Reding (in ENGLISH): The European Commission criminalises the intentional transmission of false or misleading information manipulating the calculation of benchmarks. Here we are joining forces in order to outlaw behaviours aiming at manipulating financial markets, closing possible regulatory loopholes and showing that for the Commission there is a zero-tolerance for manipulators on the financial markets. Criminal law has an important role to play as deterrence against future manipulations. That means that Member States will have to make sure that manipulation of the calculation of a benchmark is inscribed in the national criminal code and is punished with effective sanctions.
||Cutaway of a screen with Viviane Reding
||Cutaway of a cameraman
||General view of the audience