Barclays claim Bank of England encouraged Libor move

4 July 2012

Barclays has suggested its former chief executive Bob Diamond was instructed to change the Libor interbank lending rate.

The lender has made public a memo from 2008 that Mr Diamond distributed to two senior officials.

In the document, Mr Diamond revealed he had a phone call with Paul Tucker, the then deputy governor of the Bank of England, which made it clear that the bank did not always need to be paying such a high Libor rate.

The note stated: "Mr Tucker reiterated that he had received calls from a number of senior figures within Whitehall to question why Barclays was always toward the top end of the Libor pricing."

Apparently Mr Tucker got in touch after senior Whitehall officials had raised the matter.

It is the latest twist in the scandal, which has already resulted in Barclays being fined £290 million ($455 million) and the lender's chairman, chief executive and chief operating officer all resign.

By Asim Shah

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