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.