MPs are calling for another investigation into Libor rigging following fresh evidence the Bank of England pressured lenders to manipulate the interbank lending rate.
BBC Panorama last night reported a secret 2008 recorded conversation between Barclays manager Mark Dearlove and a colleague.
According to the recording, Dearlove said: “The bottom line is you’re going to absolutely hate this… but we’ve had some very serious pressure from the UK Government and the Bank of England about pushing our Libors lower.”
The programme also uncovered a letter from the US Department of Justice which suggests commercial banks were subject to pressure about the rate.
Following Panorama, Treasury select committee members Stephen Hammond, Chris Philp and John Mann told City AM they backed a fresh enquiry into Libor rigging.
Former Barclays chief executive Bob Diamond and Bank of England deputy governor Paul Tucker appeared before the Treasury select committee in 2012 and said there was no institutional pressure to suppress Libor rates.
Mann says: “There needs to be a public investigation into these allegations…It appears that the Bank and Barclays have misled Parliament and both should be recalled to appear before the Treasury select committee, and explain this new evidence, which includes Lord King, Paul Tucker and Bob Diamond.”
Philp adds: “They all have questions to answer.”