It has tainted other figures in the British political and financial scene, namely Paul Tucker who was expected to be a major contender to lead Britain’s central bank, the Bank of England.

 

The issue is the manipulation of Libor rates, the interest rate banks use to make loans to each other. Inaccurate Libor data was submitted to manipulate rates in Barclays’ favor. As long ago as 2005, the bank was making false reports about how much it was paying on its debt obligations in an effort to enhance profits on its then current investment positions.

 

Barclays’ debt costs were among the highest submitted by 2008 even though its balance sheet was healthier than its competitors. Barclays leadership at that time thought that other banks were reporting artificially low rates to conceal their distressed financial conditions.

 

Mr. del Missier, who was promoted to chief operating officer only five days before the settlement, has been cited as the lead figure in the scandal. Mr. Tucker is scheduled to appear before the same Parliamentary committee to which Mr. Diamond recently answered.

 

Libor rates are used by financial entities all over the world to gauge interest rate levels, particularly for adjustable rate mortgages and business loans.