The UK government says it will continue to work with regulators to improve standards in the financial sector after reports that a senior manager at Barclays said the Bank of England applied pressure to manipulate the key Libor interest rate during the 2008 financial crisis.
The BBC released details on Monday of a conversation between a Mark Dearlove, the Barclays manager, and his Libor submitter, in which he said “we’ve had some very serious pressure from the UK government and the Bank of England about pushing our Libors lower”.
In a statement in response to the news, a spokesperson for the Treasury said:
The government is absolutely clear that we must learn from the lessons of the past. That is why, since the financial crisis, we have carried out wholesale reform of how the financial system is regulated in this country, including making the manipulation of LIBOR a criminal offence. We will continue to work with the UK’s independent regulators to ensure that our financial sector operates to the highest possible standards.