On 5 July 2012 08:52, Gabe Menezes <[email protected]> wrote: > > > On 5 July 2012 00:58, Frederick Noronha <[email protected]> wrote: > >> Billions, Diamond and Barclays >> http://www.aljazeera.com/news/europe/2012/07/201274155043111527.html >> > > > COMMENT: LIBOR Stands for London interbank offered rate. Literally means > that and now what is now being put forward as the rate at which the bank > can borrow is wrong. Every morning just before 11 am some one phones the > Banks to ask what is the LIBOR - offered rates in a specific currency. I > worked for an American Bank and they only asked us for our Euro dollar > rates ( US Dollars traded in Europe) We quoted the rates at which we would > lend in the various periods from 1 month to 1 year, to a prime Bank > counterpart. > > I have a feeling that Barclays were quoting a higher lending rate at the > time of the troubles in 2008 as they were having difficulties obtaining > funds. I distinctly remember during the turmoil that twice HSBC had not > processed the money that Barclays had borrowed. > > It it quite probable that the B of E was concerned that such a big Bank > was quoting high lending rates at the time; implying that they had to pay > more for their own funding. So it is quote conceivable that the B of E and > the Treasury (Labour Government at that time) nudged Barclays to lower > their rates to avert a catastrophe in the ensuing turmoil........ >
COMMENT: Today Paul Tucker will be giving evidence to the Parliamentary enquiry, there will be no smoking gun but this interesting - in todays Reuters "Although the document appears to contain no "smoking guns" to implicate the Brown administration, it indicates that government's concern at the time to lower the Libor rate and get credit flowing again between banks. The fallout from the Libor scandal widened to the political sphere after Bob Diamond, who quit as Barclays chief executive this week, said Paul Tucker, now deputy governor of Britain's central bank, had called him in October 2008 to relay concerns from within government about the high level of Barclays' funding costs." Full read @ http://uk.reuters.com/article/2012/07/07/uk-barclays-libor-ubs-idUKBRE8660CZ20120707 -- DEV BOREM KORUM Gabe Menezes.
