Barclays CEO received LIBOR 'fantasy' email

Bob Diamond at World Economic Forum

Ex-Barclays CEO Bob Diamond received an e-mail in 2007 describing Libor rates as a 'fantasy', according to documents in the first U.K. lawsuit over manipulation of the benchmark.

Bloomberg reports that Jerry Del Missier, former chief operating officer of Barclays, sent the message to Diamond and ex-head of investment banking Rich Ricci, according to Stephen Davies, a lawyer for Guardian Care Homes, the company suing the bank.

Referring to 'the whole Libor curve', Del Missier said 'the real story is that these are all fantasy rates', said Davies, reading the August 2007 e-mail out at a hearing in London last week where the bank was ordered to give Guardian additional evidence.

Banks including Barclays, UBS and Royal Bank of Scotland have been fined a total of about $6bn for manipulating the London interbank offered rate, or Libor, and related benchmarks that underpinned about $300tril worth of transactions worldwide. Del Missier’s comments may refer to misleading submissions by other lenders in the run up to the near collapse of the financial system in 2008, Davies said.

Guardian, which is suing Barclays to rescind an interest-rate swap linked to Libor, asked Barclays to release more information about who might have manipulated Libor, and when the improper rates were submitted. A trial is scheduled to start in May.

To access the complete Bloomberg article hit the link below:

Del Missier Called Libor Rates 'Fantasy' in Diamond E-Mail

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