Sunday, 1 July 2012
According to papers released by the US department of Justice, Barclays admitted that it submitted low values for its LIBOR reporting between 2007 and May 2009 because it wanted to con investors and depositors of its financial strength. It believed other banks were doing the same.
It also admitted that its traders improperly influenced the rate submissions from 2005 to 2008 to make money on derivatives.
The statement of facts released by the US Department of Justice says that a senior Barclays official and a senior central bank official talked on October 29 2008 and the Bank of England official asked why Barclays’& LIBOR submissions were higher than those of other banks.
Although the individuals are not identified in the documents, it seams they were Bob Diamond and Paul Tucker, head of the Bank of England's financial stability unit.
Lo and behold, after the call, the problem was fixed, but Mr Diamond claims he knew nothing about any misreporting.