What was the regulators’ role in these financial activities? How could there be a such a devastating scandal that affects millions of people if we have “regulators”?As the scandal been revealed, the spotlight now turned to the regulators. Paul Tucker, a deputy governor at the Bank of England, will testify these information on today. This article, by New York Times journalist Mark Scott, will give you more insight on this issue.
The scandal over the manipulation of global interest rates until now has mostly put bankers in the spotlight. But the focus on Monday will turn to the regulators, both on what they did and what they did not do.
Paul Tucker, a deputy governor at the Bank of England, will give evidence on whether senior government officials put pressure on Barclays to lower its submissions to the London interbank offered rate, or Libor. Barclays agreed in late June to pay some $450 million to settle accusations from United States and British authorities that its traders and senior executives had manipulated the rate, which underpins trillions of dollars of corporate loans, home mortgages and derivatives around the world.
Mr. Tucker’s testimony could put him at loggerheads with Robert E. Diamond Jr., the former chief executive of Barclays, who told the same committee last week that the Bank of England, as well as the Financial Services Authority of Britain and the Federal Reserve Bank of New York, had repeatedly been informed about the issue, but had not moved to stop it.
Read More
Modern Finance Report 