Tuesday, July 10, 2012

Bank of England official to testify on Barclays

LONDON (AP) ? A House of Commons committee will be asking a senior Bank of England official about his contacts with Barclays during a time when the bank has admitted it was submitting dishonest information on its borrowing costs.

Barclays' former CEO, Bob Diamond, last week gave his version of a conversation with Paul Tucker, now the deputy governor of the Bank of England, about why Barclays was quoting higher rates than other banks.

Email traffic disclosed by the Bank shows that it was concerned about Barclays' rates. Two of those e-mails were between Tucker and Jeremy Heywood, then the senior civil servant in Prime Minister Gordon Brown's office.

Heywood spoke of Barclays' high rates and added that there was "a lot of speculation in the market over what they are up to."

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-07-09-Britain-Barclays/id-1612114ccc1144da87a4762dc2a9d05b

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