The Bank of England repeatedly urged commercial banks to lower their Libor settings during the financial crisis, according to a secret tape obtained by BBC journalists.
The 2008 recording adds to evidence that the central bank participated in one of the biggest rate-rigging scandals in history, the U.K.’s national broadcaster said in a report. The scandal rocked the financial industry when it was uncovered in 2012.
Libor, or the London Interbank Offered Rate, is the daily rate at which banks lend to each other. It is used to set the price of trillions of dollars worth of financial products, including mortgages and loans to retail customers.
In the recording, obtained by the BBC’s “Panorama” program, former senior Barclays manager Mark Dearlove instructs Libor submitter Peter Johnson to lower his Libor rates, citing pressure from the BOE.
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