Democracy Now: Former Exec Says Ex-Barclays CEO Ordered Rate Fixing

A former Barclays executive who left his job over the bank’s interest-rate fixing scandal has testified he was directly ordered to manipulate interest rates by former CEO Bob Diamond. Diamond resigned earlier this month just days after Barclays was fined $453 million by U.S. and British authorities for manipulating key interest rates. A British probe found Barclays conspired to manipulate the London Interbank Offered Rate, or Libor, which provides the basis for rates on trillions of dollars in transactions across the globe. The manipulation meant millions of borrowers paid the wrong amount on their loans. Diamond has maintained he never ordered company officials to take part in the rate fixing. But appearing before British lawmakers on Monday, former Barclays executive Jerry del Missier contradicted Diamond’s account.

Jerry del Missier: “I relayed the contents of the conversation that I’d had with Mr. Diamond and fully expected that the Bank of England’s views would be incorporated in the Libor submissions. … Given that Barclays was high rates, I would have expected that taking that into account would have resulted in lower submissions.”

The Libor rate-fixing scandal has spread to a number of other major banks, with at least two criminal investigations underway in the United States.

~ by wheresthemic on July 17, 2012.

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