Socialist Worker

How did bank bosses fail to notice the obvious?

Issue No. 2311

This is the graph that shows what happened after the Bank of England’s Paul Tucker spoke to Bob Diamond about reducing interest rates between banks.

Straight away, the bank’s rate falls dramatically.

Then there’s the fact that the Bank of England must have known bailed out banks, such as RBS and Lloyds for example, were under-reporting their rates.

The two banks continued to report that they were borrowing at lower rates than Barclays.

And this was the case even after they’d taken out £60 million in secret Bank of England loans. Why would they do that if anyone else would lend to them, at any rate?

Right up to the very top, they were all desperate to prop up the banks. And that meant pretending not to notice what they were up to.

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