Bloomberg News

BOE Says King Discussed Libor at Central Bankers Meeting in 2008

July 13, 2012

Bank of England Governor Mervyn King

Bank of England Governor Mervyn King discussed Libor issues with other central bankers at Basel in May 2008, the central bank said today as it released correspondence on the matter. Photographer: Simon Dawson/Bloomberg

Bank of England Governor Mervyn King discussed Libor issues with other central bankers at Basel in May 2008, the central bank said today as it released correspondence on the matter.

The central bank said a letter from then-New York Federal Reserve President Timothy Geithner on recommendations relating to Libor was forwarded to the British Bankers Association. The correspondence released included e-mails between Paul Tucker and Angela Knight of the BBA.

“Both the Bank and the Federal Reserve were assured by the BBA that it would take on board the recommendations, either through actions or through questions on which it would consult,” the central bank said in a statement accompanying the correspondence.

The Bank of England also said that “concerns about difficulties in setting Libor in the stressed market conditions of late 2007 and 2008 were widely expressed, including in the media, although no evidence of deliberate wrongdoing had been cited.”

To contact the reporter on this story: Fergal O’Brien in London at fobrien@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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