3 ms·

Well, IMHO, Barclay's is taking alot of heat for the entire industry. They were correctly reporting their libor rate, which scared some people as it was higher

Well, IMHO, Barclay's is taking alot of heat for the entire industry. They were correctly reporting their libor rate, which scared some people as it was higher than other banks libor rates. Partially because other banks were lying, partially because they were in more trouble than other banks. The government asked Barclays to falsely report their libor rate at a lower amount. This has the effect of lowering the reported libor rate. The libor rate is important as it's the base rate for pricing alot of other paper. This other paper is the base rate for pricing alot of derivatives,etc. if you follow the chain, the libor rate can indirectly affect the price of literally trillions of dollars of financial instruments. Hence the hoopla surrounding the rates manipulation.

desas 14y ago
> The government asked Barclays to falsely report their libor rate at a lower amount. Allegedly
- gaius 14y ago
  Tucker has fallen back on the "no recollection" defence, which is only one step up from "only following orders". Looks like him and Diamond are sacrificing themselves to protect the real power brokers.
  - intended 14y ago
    The emails are available though, so recollection or not it's clear no pressure is being applied. At the same time it's clear that the traders were pushing for rates to be fixed, which is why they got fined.
    - gaius 14y ago
      The story of Thomas Becket is relevant here http://www.bbc.co.uk/history/british/middle_ages/becket_01.shtml http://www.bbc.co.uk/history/british/middle_ages/becket_01.s... "Who will rid me of this turbulent rate?"
intended 14y ago
That didnt quite happen that way. Emails from the brokers in wall street clearly show that people from within the bank, not the govt, were asking for low ball rates. It was the bank serving its own interest here. These are the infamous "when I write a book, I'll mention you" / "I hope this never gets written" lines. Regarding your statement about instructions from on high -you are alluding to the comments by Bob Diamond, head of Barclays, about Tucker, the deputy governor of the bank of England. The full,emails have been released and they show little compelling evidence of instructions, but more of paying attention to the Barclays high borrowing costs, implying lack of confidence. The rest is fine. Source: Bbc http://www.bbc.co.uk/news/business-18759479 http://www.bbc.co.uk/news/business-18759479 Trader emails http://www.thedailybeast.com/articles/2012/07/05/barclays-settlement-the-worst-of-the-emails.html http://www.thedailybeast.com/articles/2012/07/05/barclays-se...

desas 14y ago

> The government asked Barclays to falsely report their libor rate at a lower amount. Allegedly

gaius 14y ago
Tucker has fallen back on the "no recollection" defence, which is only one step up from "only following orders". Looks like him and Diamond are sacrificing themselves to protect the real power brokers.
- intended 14y ago
  The emails are available though, so recollection or not it's clear no pressure is being applied. At the same time it's clear that the traders were pushing for rates to be fixed, which is why they got fined.
  - gaius 14y ago
    The story of Thomas Becket is relevant here http://www.bbc.co.uk/history/british/middle_ages/becket_01.shtml http://www.bbc.co.uk/history/british/middle_ages/becket_01.s... "Who will rid me of this turbulent rate?"

intended 14y ago

That didnt quite happen that way. Emails from the brokers in wall street clearly show that people from within the bank, not the govt, were asking for low ball rates. It was the bank serving its own interest here. These are the infamous "when I write a book, I'll mention you" / "I hope this never gets written" lines. Regarding your statement about instructions from on high -you are alluding to the comments by Bob Diamond, head of Barclays, about Tucker, the deputy governor of the bank of England. The full,emails have been released and they show little compelling evidence of instructions, but more of paying attention to the Barclays high borrowing costs, implying lack of confidence. The rest is fine. Source: Bbc http://www.bbc.co.uk/news/business-18759479 http://www.bbc.co.uk/news/business-18759479 Trader emails http://www.thedailybeast.com/articles/2012/07/05/barclays-settlement-the-worst-of-the-emails.html http://www.thedailybeast.com/articles/2012/07/05/barclays-se...