Bank of England Implicated in Libor Fixing: BBC Panorama

Credit Crisis Threatens Banking Jobs

The BoE said Libor was not regulated at the time

Banks have paid more than US$9 billion (RM39.9 billion) in fines to settle accusations they rigged the benchmark Libor rate, used to value trillions of dollars' worth of financial products.

Tom Hayes, the former banker convicted for his role in rigging the London Interbank Offered Rate (LIBOR), says "traders like me should not be in prison" because the Bank of England pressured commercial banks to keep LIBOR low.

The Bank of England said Libor was not regulated in the United Kingdom at the time.

In the recording, a senior Barclays manager, Mark Dearlove, instructs Libor submitter Peter Johnson, to lower his Libor rates.

According to the call, Dearlove, the nephew of former MI6 head Sir Richard Dearlove, told Johnson: "I am as reluctant as you are. these guys have just turned around and said just do it".

"Libor and other global benchmarks were not regulated in the United Kingdom or elsewhere during the period in question".

The scandal involved a total of 11 banks and brokerages and raised questions about the relationship between the Bank of England and banks in the run-up to the crisis.

The scandal erupted in 2012 when it was discovered that banks were falsely inflating or deflating their rates so as to profit from the trade.

Responding to the BBC report, a Bank of England spokesperson said: "Libor and other global benchmarks were not regulated in the United Kingdom or elsewhere during the period in question".

Labour has demanded a full public inquiry into allegations of Bank of England involvement in the manipulation of the inter-bank lending rate, Libor.

He was drafted back into government by Mr Brown and rose to become Downing Street chief of staff and then, in 2011, Cabinet Secretary.

The central bank added that it has provided documents and records to the U.K.'s Serious Fraud Office, which prosecutes complex cases of fraud.

"If this is true, it would be scandalous, and would completely contradict what [Paul] Tucker and [Bob] Diamond gave to the committee in 2012, in which they denied there was any such pressure from the BoE", Philp said.

The recording potentially questions parliamentary testimonies of former Deputy Governor of the Bank of England Paul Tucker and former CEO of Barclays Bob Diamond.

"The Bank is committed to publishing materials relating to the SFO's investigations into benchmark manipulation when it is appropriate to do so". "Other evidence I have seen, which is witness testimony under oath to a USA court from Jerry del Missier, who used to work for Barclays, was that Paul Tucker put pressure on Barclays in September 2007 to lower LIBOR rates".

Johnson, 62, was jailed for four years in 2016 after pleading guilty to manipulating the benchmark.

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