Is The Bank Of England About To Be Dragged Into Lie-borgate, And Which US Bank Is Next
(Awesome! From the comments section…When the wheel stops, it’s going to be something to see. The destruction of wealth will travel the wires like a mountain wildfire destroying everything in it’s path.)
by Tyler Durden
While the Lieborgate scandal gathers steam not so much because of people’s comprehension of just what is at stake here (nothing less than the fair value of $350 trillion in interest-rate sensitive products as explained in February), but simply courtesy of several very vivid emails which mention expensive bottles of champagne, once again proving that when it comes to interacting with the outside world, banks see nothing but rows of clueless muppets until caught red-handed (at which point they use big words, and speak confidently), the BBC’s Robert Peston brings an unexpected actor into the fray: the English Central Bank and specifically Paul Tucker, the man who, unless Goldman’s-cum-Canada’s Mark Carney or Goldman’s Jim O’Neill step up, will replace Mervyn King as head of the BOE.
From the BBC:
In making false submissions about their borrowing costs, managers at Barclays believed they were operating under an instruction from Paul Tucker, deputy governor of the Bank of England, I have learned.