Secret recording reportedly implicates the Bank of England in LIBOR fixing

A secret recording of two former Barclays bankers allegedly puts the Bank of England in the middle of the LIBOR fixing scandal that rocked the country, says the BBC.

In the recording from 2008, one banker claims that the central bank was pressuring huge commercial banks to keep LIBOR rates low.

LIBOR — the London interbank offered rate — is the daily measure showing the interest rate at which banks will lend to each other. It is used to set the price of hundreds of trillions of dollars worth of financial products.

The rate was rigged by traders from numerous banks, who agreed amongst themselves to submit rates that were either higher or lower than the rate should actually have been. It allowed them to make more money on trades.

http://www.businessinsider.com/bbc-report-secret-recording-allegedly-implicates-bank-of-england-boe-libor-fixing-2017-4?r=UK&IR=T&nr_email_referer=1&utm_source=Sailthru&utm_medium=email&utm_content=10ThingsOpeningBell&pt=385758&ct=Sailthru_BI_Newsletters&mt=8&utm_campaign=Post%20Blast%20%28moneygame%29:%2010%20things%20you%20need%20to%20know%20before%20the%20opening%20bell&utm_term=10%20Things%20Before%20the%20Opening%20Bell%20-%20Engaged%2C%20Active%2C%20Passive%2C%20Disengaged

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s