BOE’s Tucker to Give Evidence to Lawmakers on Libor on July 9
Bank of England Deputy Governor Paul Tucker will appear before Parliament on July 9 after lawmakers agreed to hear his version of a 2008 phone call with former Barclays’ Plc chief Robert Diamond on Libor rates.
Tucker will give evidence “on issues relating to the penalties levied against Barclays by authorities in the U.K. and the U.S. following an investigation into the submission of various interbank offered rates,” the Treasury Select Committee said in an e-mailed statement today. The panel also rescheduled a hearing with Barclays Chairman Marcus Agius for July 10.
Tucker made a request to appear before the cross-party panel of lawmakers yesterday, 90 minutes before Diamond started his testimony on the Libor scandal. Diamond, who quit this week, was ordered to testify after Barclays agreed to pay a record $455 million fine for rigging the London interbank offered rate.
Tucker will begin giving evidence at 4:30 p.m. on July 10 in London. Agius will appear the following day at 10 a.m.
The Bank of England policy maker was drawn into the furor after Barclays published two days ago Diamond’s notes on a 2008 phone call about Barclays’ Libor submissions. The memo said Tucker, at the time markets director at the central bank, told Diamond that “senior” Whitehall officials asked why the submissions were always at the “top end,” and that “it did not always need to be the case that we appeared as high as we have recently.”
Diamond told lawmakers yesterday that he had asked Tucker to tell the officials that not all banks were providing quotes that represented the true level at which they could borrow money and that he was concerned the lender could have been nationalized if officials believed it was having difficulties obtaining funding. He also said he didn’t interpret the conversation as a request to change Barclays’s Libor submissions.
“My reaction to that note was appreciation of Paul Tucker in doing his job,” Diamond said. “What he was trying to tell me is, ‘Bob, there are ministers in Whitehall who are hearing that Barclays are always high. That could lead to the impression that you’re not funding yourself.’”
Testimony from Agius, Barclays’ chairman, was originally scheduled for yesterday. He said this week he planned to resign, though he will now remain to oversee the search for Diamond’s successor before leaving.
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