Monday, July 9, 2012

Banking Boss Faces Panel in Interest Rate Scandal




The scandal over the manipulation of global interest rates until now has mostly put bankers in the spotlight. But the focus on Monday will turn to the regulators, both on what they did and what they did not do, according to NYTimes’ Dealbook.

Paul Tucker, a deputy governor at the Bank of England, will give evidence on whether senior government officials put pressure on Barclays to lower its submissions to the London interbank offered rate, or Libor. Barclays agreed in late June to pay some $450 million to settle accusations from United States and British authorities that its traders and senior executives had manipulated the rate, which underpins trillions of dollars of corporate loans, home mortgages and derivatives around the world…..

Tucker’s testimony could put him at loggerheads with Robert E. Diamond Jr., the former Barclays CEO, who told the same committee last week that the Bank of England, as well as the Financial Services Authority of Britain and the Federal Reserve Bank of New York, had repeatedly been informed about the issue, but had not moved to stop it….

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