BoE deputy governor to be grilled over Libor scandal

9 July 2012

Bank of England deputy governor Paul Tucker is to be questioned over his part in the Libor interbank lending rate rigging scandal.

Mr Tucker will appear before the Treasury select committee today (9 July) and is expected to face tricky enquiries about the role he played.

After Barclays was implicated in the affair, a note was released that showed Mr Tucker had a conversation with chief executive of the bank Bob Diamond in 2008 at the height of the banking meltdown.

In this talk, Mr Tucker told Mr Diamond that senior Whitehall aides were concerned about the lender's high Libor rate, which dropped shortly after the chat.

Mr Diamond is also coming under pressure to refuse part of his pay-off.

Business secretary Vince Cable, speaking on the Andrew Marr show, said: "I think in view of what's happened, I would sincerely hope that the board of Barclays take a fairly strict view about this."

By Asim Shah

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