Barclays executive "instructed" by Diamond to cut Libor
July 17 , 2012
A former Barclays executive has said he was instructed by his then boss, Bob Diamond, to cut the bank's Libor interest rate submissions.
Jerry del Missier, who stepped down as Barclays chief operating officer, made the statement before the Treasury select committee.
When asked if a 2008 phone call from his boss was an instruction to cut the rates Mr del Missier replied "yes it was".
Barclays maintains del Missier told his traders to cut the rate submissions following a misunderstanding over a note sent from Diamond.
However, del Missier told British MPs his actions were made on the basis of the phone call from Diamond.
Barclays' wrongdoing relates to the daily setting of the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor). The bank was fined $450 million last month.
The interest rates are two of the most crucial in the global financial markets and impact the value of trillions of dollars of financial deals between banks and other institutions.