Missing evidence raises more questions about Libor manipulation investigation

Maria Nikolova

The SFO could not get access to evidence concerning a meeting at a government department relating to Libor.

Questions have been piling up around the investigation into rigging of the London interbank offered rate (LIBOR) after a recording uncovered by BBC Panorama implicated the Bank of England and the British government into the manipulation.

Now, the ex-Labour government has to face more questions on the matter after a report by The Daily Telegraph says that a piece of evidence related to the LIBOR investigation was missing.

The piece of evidence in question is a handwritten note – a recording of a government department meeting related to LIBOR. The Serious Fraud Office (SFO) requested the note with regards to its investigation but were not provided with the original but only a typed version. The original had reportedly been destroyed.

A spokesman for the SFO said that “There was no question of any material we asked for being withheld or denied, or access to such material somehow having been restricted, and no question of our investigation being undermined by the unavailability of a note.”

However, the evidence disappearance triggers more questions about the role of the Labour government and civil servants into the setting of LIBOR.

For that matter, Sir Jeremy Heywood, who held senior positions in the previous Labour government, has been reported to have attended meetings where LIBOR setting has been discussed.

The secret recording played by BBC Panorama dates back to 2008 and involves a talk between senior Barclays manager Mark Dearlove and Libor submitter Peter Johnson. In the recording, Mr Dearlove instructs Mr Johnson to lower the Libor rates:

“The bottom line is you’re going to absolutely hate this… but we’ve had some very serious pressure from the UK government and the Bank of England about pushing our Libors lower.”

Last week, two ex-Barclays traders – Stylianos Contogoulas and Ryan Michael Reich, were acquitted of charges of Conspiracy to Defraud, with regards to a LIBOR rigging investigation. They were acquitted by a jury at Southwark Crown Court following a retrial.

Mr Contogoulas commented that playing the recording during the criminal trials might have had affected the outcomes. Tom Hayes, a former Citigroup and UBS trader who was convicted on eight counts of conspiracy to defraud in August 2015 and is now serving an 11-year sentence, called for an urgent probe after the BBC released the recording.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<