“Lowballing involved the submission of inaccurate Libor rates which were not drawn from within the market trading range, and which were therefore false,” Hayes wrote. He called on the SFO to undertake a “wide-ranging investigation” into lowballing rather than focus solely on Barclays. “Lowballing was not done at the behest of traders, but rather senior management of banks with the involvement of the Bank of England.”
The BoE became embroiled in the Libor scandal after Bob Diamond, the former chief executive of Barclays, disclosed a contemporaneous note of a 2008 telephone call he had with Sir Paul Tucker, a former deputy governor of the central bank. The note suggested Sir Paul told Mr Diamond to lower Barclays’ rate; something Sir Paul strenuously denied in testimony to a parliamentary committee.