Barclays was told by BoE to lower Libor rates submitted

LONDON, July 3 Tue Jul 3, 2012 3:36pm EDT

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LONDON, July 3 (Reuters) - Barclays said it was told in October 2008 by the deputy governor of the Bank of England that it did not have to submit its Libor interest rates as high as it had done, according to an internal memo sent by investment bank boss Bob Diamond at the time.

Deputy Governor Paul Tucker had said senior figures in Whitehall had raised the issue of Barclays' high Libor submissions at that time.

The internal memo sent by Diamond to John Varley, then chief executive officer, and dated Oct. 29, 2008, said: "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.

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

The memo was released on Tuesday prior to Diamond appearing before lawmakers on Wednesday.

(Reporting by Steve Slater, editing by Jane Baird)

((steve.slater@thomsonreuters.com)(+44)(0)(20 7542 4367 and follow me on twitter @reuterssteves))

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