Current and former executives at Barclays knew that the bank submitted lower-than-accurate Libor rates as early as 2007, according to transcripts of conversations between executives cited in a U.K. court case.
Bloomberg reports that Mark Dearlove, head of Barclays’s money-market desk, told another executive, Jonathan Stone, he’d received complaints about the bank’s submissions from an employee of JPMorgan, according to a transcript dated December 2007 and handed down in court. The document is being used as evidence in a lawsuit in London against Barclays over an interest-rate swap.
'I don’t know what you guys are playing at', Dearlove said. 'We know you’re paying 540m, why are you setting Libor rates at 530 ?'.
Companies in the Guardian Care Homes group are suing Barclays to cancel an interest-rate swap deal linked to the London interbank offered rate, saying they wouldn’t have agreed if they knew the benchmark was being rigged. An appeal by Barclays against the Libor claims is being heard alongside a similar swap case against Deutsche Bank AG brought by Indian property developer Unitech.
While Barclays hasn’t objected to the material being produced, 'the bank does not consider any of the new evidence to be relevant to the issues in front of the Court of Appeal', Jon Laycock, a spokesman for the bank, said in an e-mail.
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image: © Dick Johnson