LONDON, Feb 21 (Reuters) - Britain's Financial ServicesAuthority (FSA) will publish its internal review into when itfirst knew about banks rigging the Libor benchmark within weeks,before the watchdog is scrapped.
The UK watchdog told parliament's Treasury Select Committeein a written submission released to the media that the reviewwas being conducted by its internal audit division.
The FSA was responding to the committee's report last yearon the Libor scandal. Two UK banks, Barclays and RoyalBank of Scotland have been fined for manipulating theLondon Interbank Offered Rate, use a reference rate intransactions from home loans to credit cards.
Members of the committee were concerned the watchdog was twoyears behind U.S. regulatory authorities in starting formalprobes. The FSA said in its submission it had worked jointlywith the U.S. authorities from 2008 onwards.
The committee wants the FSA's internal probe published.
"The Treasury Committee will consider the FSA's review intoits own awareness of inappropriate Libor submissions when it isfinalised," the committee's chairman Andrew Tyrie said in astatement on Thursday.
"Some of the evidence we hear suggests early warning signsmay have gone unheeded," Tyrie said.
An FSA spokesman said the review is expected to be publishedwithin the next two to three weeks.
The committee has been pressing the FSA to give greaterencouragement to whistleblowers from banks to report wrongdoing.
"We are currently preparing a note on incentivisingwhistleblowing without moral hazard," the FSA said in itssubmission. FSA head of enforcement Tracey McDermott has alreadytold parliament she does not favour paying whistleblowers.
The FSA will be scrapped at the end of March and its powersdivided between the Bank of England and a new standaloneFinancial Conduct Authority as part of a post-crisis shake-up.
Barclays (BARC)
