Lloyds sued for unfair dismissal over Libor sacking

Andrew Reed was responsible for entering Lloyds’ yen Libor submissions

Lloyds Bank sign. 39 Threadneedle street. London
Lloyds fired eight staff last year for 'totally unacceptable behaviour' discovered during its investigation into rate-rigging Credit: Photo: Alamy

Lloyds Banking Group is being sued for unfair dismissal by a former employee who was sacked following the Libor-rigging scandal.

Andrew Reed, who was responsible for entering Lloyds’ yen Libor submissions, will take his case to a London employment tribunal on September 16.

The bank fired eight staff last year for “totally unacceptable behaviour” discovered during its investigation into rate-rigging.

Lloyds subsequently handed evidence to the UK’s Financial Conduct Authority (FCA), the United States Commodity Futures Trading Commission and the United States Department of Justice, resulting in a £225m fine.

The internal probe found Libor rates, which are used to fix the cost of borrowing on mortgages, loans and derivatives worth more than £288 trillion globally, had been manipulated between May 2006 and 2009.

Lloyds said it had undertaken the disciplinary action, including refusing to pay out around £3m in bonuses, immediately after the settlements were announced.

The bank said on Thursday that it would defend itself against Mr Reed’s claims.

“We consider this claim to be entirely without merit and it will continue to be vigorously defended,” Lloyds said.

“The individual concerned was dismissed following a thorough disciplinary process following the group’s investigation into Libor-related issues and the settlements reached with the FCA and other authorities.”

Mr Reed is just the latest in a line of bankers to sue his former employer for unfair dismissal. Royal Bank of Scotland and Deutsche Bank have also been taken to court in recent years by traders who were fired following Libor probes.