- Bank of England Rigging LIBOR – Gold Market Too?
by Mark O’Byrne, http://www.goldcore.com/us/
– Bank of England implicated in LIBOR scandal by BBC
– “We’ve had some very serious pressure from the UK government and the Bank of England about pushing our Libors lower.”
– “This goes much much higher than me” -UBS’ Tom Hayes
– Libor distraction as all markets are manipulated today
– Central bank’s “rigging” bond markets and likely gold
– Risks of bank ‘holidays’, capital controls and of course bail-ins remains
The LIBOR scandal reemerged yesterday as the BBC’s Panorama uncovered a secret recording implicating the Bank of England in the interest rate manipulation saga.
According to the BBC the central bank pressured commercial banks during the 2008 financial crisis to lower their settings for LIBOR.
In a telephone recording, aired last night in the UK, a senior Barclays manager, Mark Dearlove, can be heard instructing Libor submitter Peter Johnson, to lower his rates.
Mr Johnson: “So I’ll push them below a realistic level of where I think I can get money?”
Mr Dearlove: “The fact of the matter is we’ve got the Bank of England, all sorts of people involved in the whole thing… I am as reluctant as you are… these guys have just turned around and said just do it.”
The Barclays submitter, Peter Johnson, who is featured in the phone call was jailed in 2016 after pleading guilty to accepting requests to manipulate LIBOR. Previous assurances from the Bank of England that they were not involved in LIBOR fixing have now come under question again. It has long been rumoured that the LIBOR fixing went higher than the banks and individuals that were originally implicated.
In 2012, a 2008 telephone note came to light which recorded a phone call between Paul Tucker, executive at the Bank of England at the time and Barclays’ boss Bob Diamond. The note refers to what is apparently LIBOR not needing to be ‘so high’ as instructed.
The telephone note was taken on the same day that the Panorama aired phone call between Johnson and Dearlove, took place. Despite the published telephone note, Bob Diamond told the Treasury Select Committee in 2012 that he had only recently became aware of the manipulations.