BoE's King: Possibility of Libor manipulation not considered in 2008

FXstreet.com (Barcelona) - BoE Governor Mervyn King said today during a hearing before the UK Parliament's Treasury Select Committee, that he hadn't received any signals of Libor rate fixing in 2008. The Governor as well as MPC member Paul Tucker and other officials were questioned on Tuesday on the matter of the Libor scandal which originated in Barclays and has been expanding in ever-widening circles.

According to Governor King neither the BoE nor the New York Fed knew anything about attempts to manipulate the Libor, although they considered the procedure of establishing it faulty. The central banks as well as Barclays released documents from 2008, which prove that BoE officials knew about problems connected with Libor setting.

Barclays will pay around 450 million dollars to UK and US regulators in order to resolve the claims of interest rate manipulation. Several other banks are facing inquiry on the matter.

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