The bankers vs the Bank of England
The Bank of England’s role in the inter-bank interest rate-fixing scandal is in question today, as former Barclay’s chief executive Bob Diamond gives evidence to Parliament.
There have been suggestions the BoE’s deputy governor Paul Tucker knew Barclay’s reported Libor rates did not reflect reality. Diamond will explain to MPs at the Treasury Select Committee his memories of a 2008 conversation with Tucker in which the rates were discussed.
The Big Issue has been inside the Bank of England in recent weeks to discover whether it is ready to assume responsibility for regulating the City, after the government granted it a huge array of new duties.
Andrew Tyrie, chairman of the Treasury Select Committee, raised his concerns about accountability when sweeping new powers come into force next year.
When asked whether the BoE will cope with its job as regulator, he said: “Well, the Bank will be given that power (to regulate banks), so it will simply have to cope.”
To find out more on the Bank of England, look out for this week’s magazine, on the streets until 15 July.