The Treasury select committee (TSC) has criticized financial regulator, Financial Services Authority (FSA) for failing to prevent the Libor rate rigging scandal.

In a new report titled, ‘Fixing Libor: some preliminary findings’, the TSC said that bashed the FSA for not carrying out adequate supervision and governance and for not taking any action on receiving information from various sources.

Barclays was earlier fined £290m by the FSA and US authorities for its role in the rigging scandal. Barclays has lost three top executives, $5 billion of market value and is facing a government inquiry in the case. The bank is now facing a fine of a record 290 million pounds in the case.

The report says that the FSA did not identify the “extreme weakness” of Barclays’ internal compliance for Libor setting procedures even after several visits by the officials. It is believed that other banks including Royal Bank of Scotland, UBS and Citibank are being investigated by the authorities.

The TSC has said that it wants the FSA to report back to with improvements in its supervisory procedures. It also said that the FSA is about two years behind the US authorities in investigating the Libor rate rigging scandal.