BARCLAYS & The BoE: Del Missier resigns as web of deceit unravels

Lie upon lie, until nobody knows the truth

Amidst jaw-dropping attempts to treat the British public as if they all had a collective IQ of 44, The Bank of England, The Treasury, the Chancellor, Bob Diamond and Jerry Del Missier all made a game attempt to suggest this afternoon that none of them had lied at all about anything.

It truly is Malice in Blunderland.

Jerry del Missier, the co-head of Barclays investment bank, today resigned “because he’s fed up of the endless Libor lies” according to Slog and numerous other MSM sources. This was the Flash Harry who, it seems, (this from the Telegraph) ‘was the senior manager who misinterpreted the comments of chief executive Bob Diamond after he came off a call in October 2008 with Paul Tucker, Deputy Governor of the Bank of England’ – Diamond having last week said to colleagues he hadn’t passed on any message other than the order he was given.

But the Telegraph continues, ‘Due to that misinterpretation, Mr del Missier told staff that they had been instructed by the Bank to deliberately lie about their Libor submissions.’

Is there anyone on the planet who really believes an instruction as mega as this one stood a snowball’s chance in Hell of being ‘misinterpreted’? You’re Bob Diamond right, Master of the Milky Way and do not accept Imposters: and one of the few bigger dicks than you in the Galaxy rings up to say, lie your head off about Libor or we’re all dead. What’s to misinterpret?

“Oh, Libor you said – I’m sorry Mr Tucker, I thought you said Lie more. Silly me getting that wrong, what with so much at stake an’ all.”

So anyway, Diamond Bob passes on the message to Jerry.

“Oh,” says Jerry last week, a mere four years later, “You meant lie about the rate? Aw shucks Bobby, ah dun thought yo’ wuz tellin’ me ter lie about the date. Jeez boss, I’m sorry. Guess I better resign”.

What utter and complete bollocks. This is the Nixon White House with added neck.

Zero Hedge’s Tyler Durden notes this afternoon, ‘The politicians, who know their secrets are safe if only for a little longer, are delighted’. He’s right on the money.

The Slog sticks by what it was told over a week ago by three separate high-ups in this sector….people who are also sick to death of Lie-BorGate: this caper could not have been organised without Central Bank cooperation at least – and very probably resulted from a CB initiative – see my Slogpost of last week.

Tyler Durden refers to Diamond and Del Missier as ‘casualties’. Jawohl: Georg von Ozzborn vishes to tell ze Red Cross zat zey vair most unfortunately shot vile tryink to escape.

But now with Diamond deciding to go through with the Select Committee testimony tomorrow, that spot is a must see.

Related: Knight escapes from BBA scandal just in time as BIS also seen to have lied. (It’s a shame this piece was overshadowed by the Bob & Jerry Show, as it is crucial to undertanding the international and politcially woven nature of this manipulation. )

77 thoughts on “BARCLAYS & The BoE: Del Missier resigns as web of deceit unravels

  1. John, thanks for making me laugh out loud in spite of myself. The whole farce is beyond a joke. These arrogant boneheads actually do think we are all to thick to understand what they have done.

      • Even the smartest people make typos. You really don’t like me do you? I wonder why? (not)

      • Fear not BR, after love of self, there may not be enough left over for others such as normal mortals like you and I.

        I’m guessing of course.

      • JS
        It’s a new verb: ‘to thick’ means to be an arrogant twat willing to believe that everyone but him/her is stupid. See also psychopath.

    • Nothing new there, they all thought we were too thick to understand what they were doing pre-2007. With the connivance of the then government and especially the two top people, they traded on that for a very long time. The amazing thing is that we are so tolerant of these buffoons, and ultra-wealthy buffoons at that. And that we believed how vital they are, or were, to our national well being.

    • Arrogant boneheads, yes. That they actually think we are all too thick to understand, no. They know full well everyone that has more than a single brain cell ‘knows’ more or less what has happened and who or what office was most likely involved. What they are relying on is that no one can prove it.

      • I agree – everything ‘incriminating’ will be done over the phone (this is what SHOULD be monitored by the security services 24/7 if anything) or out having a nice round of Golf.
        An unofficial cartel – no problem when its drinks in the 19th where the topic discussed are the ‘arranged’ differencies to pretend that the cartel is not what it is.
        Sad to say, that before the Blair thing got in bed with the ‘rich and powerful’ there was (seemingly at least) less corruption at the top – because if nothing else – Labour pretended to be in favour of the downtrodden serfs and enjoyed nothing more than bashing the wealthy for its ticket (even if the bashed were the honest wealthy). We have moved into the realm and rule of the Fascists……..A game Cameron is competant to play a role in (on the opposite side to the ordinary folk just trying to enjoy their time on this planet with minimal interference and a modicum of happiness).

  2. Former Minister for the City, Ed Balls on BBC News 24 now. Huw: ‘Is it possible that Govt officials or even Ministers could have exerted pressure on Banks (to fix LIBOR)? Balls: ‘I have absolutely no idea!’

  3. The sad part is that we have such a low opinion of Banksters and Politicians that we expect them to lie about their lying. Nothing ever seems to come of it, no one goes to jail. Sure you will get some sacrificial lambs here and there however these clowns, continue to get away with sealing on a massive scale.

    • Sure sealing too! They crush the little pups heads with their clubs as well as stealing from the rest of us.

  4. By the time the enquiries and reports have been kicked down the road the criminal behaviour will be whitewashed. Just another day in our wonderfull city of dreams, the engine of the UK. Conspiracy, fraud and more to be exposed will not be dealt with.

  5. this is the email BD sent to jerry seems pretty clear he was being told to fix the rates. also confirms what you wrote last week orders came from whitehall.

    Further to our last call, Mr Tucker reiterated that he had received calls from a number of senior figures within Whitehall to question why Barclays was always toward the top end of the Libor pricing. His response was “you have to pay what you have to pay”. I asked if he could relay the reality, that not all banks were providing quotes at the levels that represented real transactions, his response “oh, that would be worse”.

    I explained again our market rate driven policy and that it had recently meant that we appeared in the top quartile and on occasion the top decile of the pricing. Equally I noted that we continued to see others in the market posting rates at levels that were not representative of where they would actually undertake business. This latter point has on occasion pushed us higher than would otherwise appear to be the case. In fact, we are not having to “pay up” for money at all.

    Mr Tucker stated the levels of calls he was receiving from Whitehall were ‘senior’ and that while he was certain we did not need advice, that it did not always need to be the case that we appeared as high as we have recently.
    RED*

    • Yeah but where is the smoking gun? As far as I can see the government/ BofE could simply have been concerned that Barclays was about to do a Northern Rock and were poised to intervene. BD could then have decided that massaging Barclays submissions down was in the banks (well, actually his) own best interest, as it avoided government involvement.

      In any case, I’m just glad Qatar ended up paying for it and not me. Similarly for HSBC. I’d rather not end up paying to bail out a massive international bank with 300,000 employees just because JW thinks we should look under that particular stone. Maybe JW wants to shoot himself in the head – that wouldn’t really be good advice either.

      • @Js
        Lots of ‘could’ in amongst that analysis.

        I can’t be certain yet but you ‘could’ be a supporter of one of the following:

        “It works for me so hang the rest.” or

        “I was only following orders.” or

        “The end justifies the means.” or

        “Well if I didn’t do it, someone else would.”

        But I don’t like to jump to conclusions, so I’ll keep on reading your critiques and see which of the above applies. Surely one or more of them will.

      • It is extremely unlikely that there will be a smoking gun. But, to continue the analogy, various people have been discovered in the room with the murdered body which was alive when everyone went in. It is unlikely in the extreme that the body murdered itself-which leaves one or more of the others as the culprit. A real instance is the Stephen Lawrence murder-nobody knows which one did it-but sure as hell Stephen Lawrence didn’t. That doesn’t mean a murder wasn’t committed and that the group who did can’t be identified.

    • Pat
      ‘senior’ aka Cabinet office mandarin aka Gordooooom the greatest ever Chancellor who saved the world.

      • @JW: Are you in possession of evidence that it was Gordon Brown? or is it based upon sources?

    • @pat: Apart from the quote you post not making much sense re. exactly who was saying or writing what to whom, I see nothing that could be construed conclusively *as an order from Tucker to Diamond* to rig his Libor submissions. I do not see a smoking gun.

      That said, I do believe the BoE was involved in the racket and also Brown and Balls.

      However, since Cameron was nowhere near government at the time, I think the Slogmeister will have to stop blaming him and the Tory Party …it gets a tad tedious.

      • BD wrote email to his team summing up what tucker told him in a phone call. and it seems tucker was suggesting if your prefer that BD rig his rate

      • @pat: yeahbut…the quoted e-mail does not look like a smoking gun and I’m sure Tucker will assert very strongly that he was not giving an order to Diamond to rig Libor. And bear in mind..the e-mail was written by Diamond, so it will reflect what *he* wanted to record about his telephone conversation with Tucker.

  6. Clearly Transparency International has a problem with its ‘Corruption Index’, or maybe it does not treat institutionalised corruption ( such as ‘bookmarks’ or members of the US Congress House Banking Committee being recipients of large sums of donations from the insitutions that they are meant to be reviewing) as corruption but rather as a cost of doing business. Same with friendly phone calls from Regulators suggesting outcomes perhaps?

    I better lie down and take a pill, my cynicism is showing.

  7. “this caper could not have been organised without Central Bank cooperation at least”

    Except that if you actually read the reports not only did Barclays know what the BofE may have wanted it didn’t actually know what other banks were up to. So it merely assumed that since it couldn’t get loans at say 6% that the other banks couldn’t get loans at 6% which meant that they were lying which meant they’d better lie too. So they were all lying just to keep in line. No conspiracy or top-down organisation needed.

    By the way, Microsoft just wrote off 100% of a $7bn investment into an on-line advertising company – so incompetence should never be ruled out when these masters of the universe are involved.

    • “So they were all lying just to keep in line.”

      So that’s alright then, a bit like,’ if I don’t behave like a devious, lying, thieving scum ball someone else will, so best I get in first’.

      Yes, I see where you are at.

      • In the film “Margin Call”, the boss of the bank says something like ..
        “to win you have to be the smartest, you have to cheat, or you have to be the first. We are not the smartest, we do not cheat, so we will be the first”.

        Looks like Barclays figured they weren`t the smartest but they would get ahead by lying and being the first …..
        .

      • Yeah, but JW is claiming that this was all part of a conspiracy. I’m just saying that so far I see no real evidence of that – could be wrong but I don’t see it yet. The email that everyone is jumping up and down about is [1] actually copied down by the guilty party [2] is one of only three conversations he ever wrote down [3] no transcript of the actual conversation exists – only the guilty party BD claims the conversation was as he claims it was [4] the conversation was in any case open to misinterpretation.

        Fact is that at the time Barclays wasn’t even using interbank lending, as BD admits. They were sourcing funds from Qatar. This didn’t stop Barclays submitting to LIBOR even though they weren’t using interbank lending. So their LIBOR submissions were a perception of a market they weren’t even participating in. No real surprise that the BofE were a little miffed that Barclays were putting in LIBOR submissions that were out of whack when they weren’t even using interbank lending!

        Furthermore, BDs claim that other banks were low-balling LIBOR submissions was based on what exactly? Would it not be reasonable for a liquid bank like HSBC to find it easier to obtain loans at prices lower than Barclays that by 2008 had already released a special rights issue to raise further funds eventually giving 8% of Barclays to Qatar? Seems like BD may have been projecting his own bank’s failings rather than being knowledgeable about other banks borrowing rates. Certainly the Americans seem sanguine about HSBCs LIBOR fixing which they have claimed was minor.

  8. Now look……. War Criminal Bankster Tony B.Liar and his mate A’lies’tar Campbell were masters in the Art of Deception. Weapons of Mass Destruction and all that shit.

    It was always gonna rub off on simpleton Gormless Brown that this was the way things were done and he told the BoE and the BoE told ‘Diamonds are forever’ and he told Tommy Tucker!

    Simple ..what’s all the fuss about!

  9. God forbid that anyone might suspect the BIS of knowing anything about this and suddenly discover maybe they know something about the manipulation of gold and silver prices too, which I’m so sure they don’t.
    Funnily enough, did you see Milliband giving it some about LIBOR whilst Balls sat there with a beetroot red face and Harman her usuall sullen stony face. Guilt written over both of them. I bet Milliband is banking on Cameron whitewashing this. We’ve more chance of a referendum on Europe than the truth coming out.

  10. Were the contacts in letters or e-mail-difficult to remove.Also,all phone calls to trading floors and banks are recorded-even mobiles-surely somewhere there lies a juicy morsel for an eager lawyer.

  11. OK, go after them, but do not allow the Barclays Libor rate tweaking affair turn into a decoy for the much more damaging regulatory manipulation of interest rates in favor of those perceived as not risky and against those perceived as not-risky. http://bit.ly/O0NaZy

    • @PK
      Right you are. This incident barely touches on the degree of outrageous lawlessness and unaccountability. I am tempted to write something very harsh, but one middle finger is bandaged — I’m not risking another.

  12. John, I just want to thank you for the inside track on the scale of this. I was deeply suspicious (as an ex-lowly Barclays employee), so I spread the word – family, friends etc – but was not believed. Now it seems you were right and this still has a way to go. Once again thanks for breaking this stuff.

  13. Pingback: John Ward – Barclays & THe BoE : Del Missier Resigns As Web Of Deceit Unravels Lie Upon Lie, Until Nobody Knows The Truth – 3 July 2012 | Lucas 2012 Infos

    • @AF: Just got through to personal on about 5th attempt, seems like a ‘technical’ problem – hopefully not that “technically, we’ve lost all your money”! I still keep a few quid in there. Commercial seems normal.

      • @Hiero
        Got back into my account tonight!
        This online banking is not total control as the banking scum would have us believe.
        The trouble is online banking is the only place you can at least get a miniscule amount of interest right now! But the price you pay is the testing of your nerves.
        Oh for a bank you could trust.

  14. We are not all too thick,we are only too scared to do anything about it and they know it so that is why they do it.I was inside once and i asked a serial robber who spent half his life in prison,Why?He said so he did not have to work hard.he robbed and doing time was worth the lifestyle he had when he was free.Sound familiar?

  15. Hi ….I’m Tony B Liar ….. would I lie to you …..well for two and a half million quid a year from J P Morgan……. I might just!

    • And .. er ..um .. I’m Gormless Brown …and ..er ..um …whatever ….er …um … I’m madder than all of you put together!

      Don’t forget ………I Saved the World!!!!!

      • Is it a bird … .is it a plane ….no …………it’s Gormless Brown!

        Saviour of the World!

        Leader of The LIBOR!!!!

  16. Okay everyone so it is as a result of FSA investigation that led to libor rates being fixed going mainstream. however at the same time we have an email from BD that suggests the head of the FSA told him to fix the rate

    If the FSA told him to fix the rate then why would they investigate? thoughts?

      • Email I posted above was what BD sent to his team telling them what tucker told him on the phone. At the time tucker was the head of FSA and so begs the question if FSA knew about the rigging why did they then investigate it.

        JW can you maybe explain this in a follow up post. also do you have more evidence on brown and agree with BT why are you blaming cameron this was before his time

      • Has to be said that IF Cameron knew about it and kept quiet about the subject for ‘political reasons’ – he is in the mix and will be in the oven along with the dough.
        Although they say the words and do not mean them. We the people expect our rulers to be clean and honest. It is the lies and dishonesty for personal gain (from those who purport to guide the morals of the nation) which most distresses the masses.
        The likes of Harman during the expenses scandal pointing out that ‘ours’ are not as bad as ‘theirs’ is of no relevence but a reflection that they ‘expect’ a bit of corruption – whereas we the people – do not !

  17. IT WAS ALWAYS KNOWN THAT SOME BANKS MANIPULATE LIBOR TO SUIT THEIR BOOKS. THAT IS WHY LIBOR IS AN AVERAGE WITH THE OUTLIERS REJECTED. LIBOR HAS NEVER BEEN A HARD NUMBER. IT WAS ALWAYS BASED ON GUESSES AS TO WHERE A BANK “BELIEVED” IT COULD FUND.

    I DO NOT SUPPORT WHAT MANIPULATION WENT ON. BUT IT IS LIKE EXPECTING A FOOTBALL TEAM TO MAKE A LATE TACKLE OR HOLD AN OPPONENTS SHIRT. FOR EVERYONE TO GET UPSET AT THIS IS LIKE GETTING UPSET WHEN THEY DISCOVER THAT BEARS SHIT IN WOODS AND THAT THE POPE IS CATHOLIC.

    WHAT BARCLAYS DID IN 2008-9 IN TERMS OF REPORTING A LOWER LIBOR WAS AN EMERGENCY SANCTION THAT MAY HAVE COST THEM MONEY ON THEIR DERIVATIVES POSITIONS BUT MAY HAVE PREVENTED A BANK RUN.

    • More likely than a bank run, they didn’t want the government stepping in to bail them out, Barclays share price recovered fairly well shortly after dropping to 50p ish a share, the same cannot be said for RBS or LLoyds.

    • Firstly, writing all in capitals makes your post difficult to read.
      Secondly, the banks are supposed to be honest-it is how the system actually gets credibility.
      Thirdly, the leaders of these banks are also supposed to be honest and competent-they were neither but got paid a lot of money for it.
      Fourthly, we the people actually underwrite these banks so we would rather like them to be “decent, honest and truthful”.

      • Yeah, but in fact the banks WERE being honest because they WERE solvent (having already been bailed out by the BofE/Qatar whoever) and LIBOR was only high because interbank lending had STOPPED. Thus if LIBOR had been allowed to drift to high levels in 2008 it would have indicated the banks were going insolvent when they WEREN’T! The problem was that LIBOR was set up to benchmark interbank lending when it should have been set up in the beginning to benchmark bank FUNDING. If they had set it up properly in the first place then the fix would not have been needed. As it happens it seems that banks started to report what they were paying for their short-term funds rather than what they might conceivably have had to pay for their short-term funds if interbank lending had actually been happening at all. So what SHOULD the banks have done? Report a LIBOR submission that reflected the truth that interbank lending had dried with a submission at say 100%? Or reflect the reality that they were sourcing funds from other non-bank sources at say 5%? If they had stated 100% I can tell you there would indeed have been a run on the banks and you and I would have been bailing out HSBC and Barclays and all the others! Rather an expensive business! So I’m glad the fix was in since it was rather benign in outcome. Doesn’t mean I think it should be allowed again and measures must be taken and all that, but personally I think this little technical matter should have been swept under the carpet (and probably would have been if it wasn’t for the fact the US authorities want to give London a kick in the balls because it is now the only competition that New York/Chicago has in the global financial markets).

        So please wake up and realise the good intentions you have are only leading to financial hell.

  18. If Barclays reported a lower Libor rate, as they did, does that not mean we all had to pay a lower Libor plus something interests? Does that make Barclays a neo Robin Hood?

    • No, it means they created a false market-the nemesis of true capitalism (of which they are supposed to be exemplars).
      In any event, they didn’t just do it to suppress the rate. Sometimes they raised the rate to make their trades profitable i.e. fraud. It is exactly like having a “ring” at an auction-the market is not real and true value is not realised-and that most certainly is a criminal offence.

      • Wrong. LIBOR is only a benchmark. It is used to calculate interest rates on some financial products. It is the final interest rate that is then traded in the open market, often against financial products that use a different benchmark for trading (such as EURIBOR). Barclays traders selling LIBOR based products were trying to push the LIBOR rate down so their LIBOR rate based products would be competitive in the open market. Barclays also were under pressure to put in low submissions as it made them look solvent (which in fact they were, because they were sourcing funds from Qatar and not using interbank lending in 2008, so LIBOR had become a work of fantasy in 2008, reflecting a market for interbank loans that simply didn’t exist).

        There is no evidence of collusion of any of the parties in setting LIBOR (at least, not so far). It just became in the interest of all parties contributing to LIBOR to push the rate this way or that simultaneously to suit their own activities in the market, depending on shifts in the market that affected all the contributors.

    • Yes it does. Especially as LIBOR at the time of the fix didn’t reflect bank funding rates as nobody was using interbank lending at that time so LIBOR was meaningless.

      In the UK we don’t use LIBOR to set mortgage rates – we do have some rates based on BofE rates. Some US mortgages are based on LIBOR, and if LIBOR had risen to reflect the fact that interbank lending just wasn’t happening at any price, those people paying LIBOR based mortgages would have been thrown out of their homes during 2008, for no good reason.

  19. Delay a bank run.
    All this can kicking is going to result in a neck breaking fall when
    the can gets too heavy .Right about September/October if
    WWIII does not happen to save TPTB.

  20. Your turn of phrase “iz wonderful”! Ha ha.

    Will we yet see one or two of these being bumped off like the last banker seen hanging “over” tower bridge? It is the only way to stop the contagion and I wonder how many documents are now being kept hidden at times as a final blackmail for ones life as a get out of jail card.

    So truly amazing it could be a thriller, “How to catch a banker” alternatively “the last banker standing” or hanging if you prefer. Would you then not call that thriller a black comedy I would.

    Cynically it will likely be classed as an autobiography and sold for yet more millions, print enough said copies and call them derivatives or a new form of currency maybe.

    Mr banker, some of us really are not that dumb. We may have started late in life to understand you but the net is closing. Number of exits? None.

  21. Garry is that you
    July 3, 2012 at 9:06 pm

    More likely than a bank run, they didn’t want the government stepping in to bail them out, Barclays share price recovered fairly well shortly after dropping to 50p ish a share, the same cannot be said for RBS or LLoyds.
    Reply

    Rupert Blanketstein
    July 4, 2012 at 2:47 am

    Hole in one….
    Well done!
    Rupert Blanketstein
    July 4, 2012 at 2:48 am

    I know the answers because I am one of THE swinging dicks in the City.

  22. There are a lot of eager lawyers on American TV yesterday and overnight,earnestly informing Americans as to the duplicity of “London”.These lawyers were talking payback in the Billions of Dollars,to whom I have no idea,the TV anchor was a lot more red blooded.American TV anchors were strongly blaming British banks and calling for prison time for all those Brits-its like the 4th July-!Extradition here we come,or shall it just be a rendition.All those nice chaps in Grosvenor Square are going to be on overtime.

    • And then the global world financial system will be run from New York, with no competition whatsoever, Frankfurt and Paris already having been crushed.

      Maria, you are like a turkey cheering because Christmas is coming.

  23. Hello Mr Diamond, HR here. Just a quick courtesy call to let you know we are working on your £20,000,000 severance package and to say we are looking forward to hearing your testimony today at the Treasury Select Committee.. Oh did I say we are working on your £20,000,000 severance package? My memory is getting really terrible, I can’t remember what I said 5 minutes ago never mind years ago. Well must go, got a severance package to put together. Good luck today at the Treasury Select Committee hearing.

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