In an internal memo dated 29 October 2008 that Barclays has now made public, the deputy governor of the Bank of England, Paul Tucker, and “a number of senior figures within Whitehall” were aware that there were irregularities over Libor rates being set by Barclays and other investment banks.
Despite Diamond saying that the conversation with Tucker did not lead to him receiving any instruction about what to do with his bank’s Libor submissions, on 30 October 2008, the rates it submitted fell sharply.
Shadow chancellor Ed Balls has forced a debate on the issue tomorrow (5 July) while this afternoon’s quizzing of Diamond is expected to be led by chairman of the Treasury Select Committee Andrew Tyrie MP.
In the meantime, the man now at the helm of Barclays and responsible for recruiting the new chief executive is Marcus Agius, who has said his resignation earlier this week has was merely an indication of his intention to resign. He will appear in front of the select committee next week.