Vote on Criminal sanctions for insider dealing and market manipulation:
- extracts from the vote
- statement by Arlene McCARTHY (S&D, UK), rapporteur
Lieu: Brussels, Belgium - European Parliament
End production: 09/10/2012 First transmission: 09/10/2012
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. The 25th of july, 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.
||External view of European Parliament
||Soundbite (ENGLISH), Arlene MC CARTHY (S&D, UK), rapporteur: "I think it's important we now update the rules and we make them tougher in fact, because we've seen more and more cases of cross border abuses, so not in just one member state. In one case they were investigating manipulation in seven different member states. It was a ring of people involved. So that means that we got to have really strong EU rules. It's not enough for one member state to do the job, we got to have strong EU rules".
||Soundbite (ENGLISH), Arlene MC CARTHY (S&D, UK), rapporteur: "For the first time ever we are going to extend that to cover the kind of crisis we just saw with banks, the Libor crisis, the manipulation of interests rates. A manipulation of interest's rates affects everybody. It affects your mortgage, it affects your savings, it affects loans to students or small businesses. So that will be in because when that crisis broke we had no law to be able to prosecute or punish those people".
||Soundbite (ENGLISH), Arlene MC CARTHY (S&D, UK), rapporteur: "The other innovation is that for the first time ever we would have EU wide criminal sanctions. That means that people that intend on committing abuses would actually face going to jail. And we didn't have that in the old rules, we just had civil penalties, fines. We think that this is just so serious issue now. It's undermining integrity of markets, it's affecting investors, it's affecting pension funds".
||Soundbite (ENGLISH), Arlene MC CARTHY (S&D, UK), rapporteur: "I think the financial services industry always lobbies, I think they recognised they have to keep their own industry clean, it's about their credibility, it's about their reputation. So in fact they supported the need for market abuse rules. But when it comes on the details they always want it weaker than it is. But we think stronger rules is the only way forward".
||Cutaways : extracts from the votes and shots of Arlene MC CARTHY (10 shots)