Bankers accused in crisis could face trials in US

Sanctions against bankers deemed responsible for the financial crisis could include more legal action abroad, as the UK authorities struggle to bring prosecutions, lawyers say.

The lack of activity by the FSA, which last year conducted its first prosecutions for insider dealing, could be mitigated by extraditions to the US where prosecutors have been more active in investigating banks and senior executives.

“US prosecutors regard non-US participants in ‘white collar’ crime as fair game and have been clear in sending messages to foreign executives that they are not beyond US law,” said Luke Tolaini, a senior UK lawyer on financial crime.

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“The response to market issues is much more likely to involve criminal proceedings in the US than here … they also have a very high conviction rate, largely because of their free use of plea agreements.”

Plea agreements allow those charged with fraud to have their sentence reduced for admitting lesser offences. They are not yet recognised under UK law, despite being strongly endorsed by lawyers and politicians including the attorney general, but are under consideration.

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