We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedRisk

BoE in almost daily contact with Barclays in 2008 over Libor, emails reveal


Deputy BoE governor Paul Tucker was set to face a parliamentary inquiry into the rate-rigging scandal on Monday

Article comments

Newly released emails reveal the Bank of England had almost daily contact with Barclays in October 2008 over Libor with its deputy governor contacting Barclays ex-boss Bob Diamond several times.

An email showed on Monday that one occasion deputy Bank governor Paul Tucker directly remarked on the high level of the price of a bond to Diamond.

"Struck that your govt gnteed bond was issued at around 140 over gilts," the subject line of an email sent by Tucker to Diamond on October 26, 2008 said.

"That's a lot," the body of the text said.

Tucker, who is tipped to be the next Bank governor, on Monday faced the parliamentary inquiry into the rate-rigging scandal that has already cost Diamond and several other senior executives their jobs at the bank.

Tucker was to appear before MPs examining Barclays and other banks suspected of manipulating Libor, the interbank lending rate that underpins trillions of dollars of contracts around the globe at 1530 GMT.

Earlier this month, Barclays was fined a record £290 million by US and UK regulators for conspiring to rig Libor rates between 2005 and 2009, plunging the bank into crisis and triggering a brawl between politicians over who was to blame.

Brussels also stepped up its involvement in the probe and said it intends to propose new rules that would criminalise the manipulation of indexes such as Libor.

"We need to draw lessons from the Libor case," said a spokesman for Michel Barnier, the EU Commissioner in charge of financial regulation. "We intend to close the regulatory gap in our proposed market abuse legislation by including the direct manipulation of market indexes such as Libor."

The BoE's Tucker asked to appear before the lawmakers' panel to clarify his position after questions over his role in the scandal. Barclays is among more than a dozen global banks under investigation by authorities in US, Europe and Japan, but the only one so far to admit wrongdoing.

Share:

Comments

BoE in almost daily contact with Barclays in 2008 over Libor, emails reveal
Risk

Energy risk: How data is eating up all the energy

Energy risk: How data is eating up all the energy

Any failure in energy supplies to data servers can result in severe consequencesmore ..


EMEA corporate upgrades outnumber downgrades, says Moody’s

Rating agency notes first such instance since the financial crisis yearsmore ..

World hit by record wave of 'mega' data breaches in 2013

Over half a billion records compromisedmore ..

CFOs bullish on UK growth prospects

Finance chiefs' appetite for risk has doubled that of a year agomore ..

Why BYOD needs to be on every CFO’s agenda

The Software Alliance explains why BYOD can be a legal nightmare for businessesmore ..

Audits key to managing cyber risks

Cybersecurity controls and reporting procedures should be assessed annuallymore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *