Bob Diamond says banks across the world were fixing interest rates in the run-up to the financial crisis

Wednesday, July 4, 2012
By Paul Martin

OLIVER WRIGHT , JAMES MOORE
IndependentUK
WEDNESDAY 04 JULY 2012

Banks across the world were fixing interest rates in the run-up to the financial crisis but regulators failed to take action to stop it, the former head of Barclays claimed today.

Giving evidence to Parliament Bob Diamond said Barclays had raised the issue of banks ‘under-reporting’ the true amount they were having to pay to borrow money but were ignored.

He declined to say that the regulators “were asleep at the wheel” but added: “There was an issue out there. (It) should have been dealt with”.

But Mr Diamond denied that the Bank of England told him specifically to ‘fix’ interest rates during a phone conversation during October 2008.

He told the Treasury Select Committee he “didn’t believe” he had “received an instruction” from Deputy Governor Paul Tucker about the fixing of interest rates.

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