Socialist Worker

Banks lied over rates swindle

Issue No. 2549

Former Barclays boss Bob Diamond

Former Barclays boss Bob Diamond (Pic: World Economic Forum)

Top bankers lied about their lending rates before the 2008 crash—and the plot went right up to the Bank of England.

A secret recording unearthed by the BBC’s Panorama programme raises new questions about the Libor lending rate rigging scandal that first came to light in 2012.

The recording reveals senior Barclays manager Mark Dearlove telling fellow Barclays banker Peter Johnson to push the Libor rate down.

Dearlove said, “We’ve had some very serious pressure from the UK government and the Bank of England.”

When asked for confirmation, Dearlove added, “These guys have just turned around and said just do it.”

Libor, the London Interbank Offered Rate, is a measure of the interest rates at which banks are willing to lend each other money.

The higher the Libor, the more worried bankers are.

These dodgy dealings set the stage for the financial crisis that the rest of us are still paying for with austerity.

Instead of accepting cuts we should tell the bankers—we want our money back.

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