* Court releases shortlist of names linked to Libor probe
* Lucas, Ricci named on shortlist
* CEO has warned staff to adopt new standards or leave
* Guardian Care Homes suing over alleged mis-selling
By Matt Scuffham
LONDON, Jan 25 A number of current and past
executives at Barclays are on a list of individuals
named in documents relating to the regulatory investigation into
the Libor rate-rigging scandal, court documents released on
Guardian Care Homes, a residential carehome operator based
in Wolverhampton, England, is suing Barclays for up to 37
million pounds ($58 million) in a claim that it was mis-sold
interest rate hedging products which were based on Libor.
The Guardian Care Homes case is the first to link a
complaint over the alleged mis-selling of interest rate swaps to
the investigation into attempts to manipulate Libor and other
benchmarket interest rates.
The case is already shining a light on those involved in the
bank's interest rate-setting process and asking fresh questions
about the involvement of senior executives in the affair.
On Friday the High Court in London released a list of 25
individuals named in regulatory documents concerning the Libor
investigation which have been lodged with the court and which
refer to attempts by Barclays to manipulate Libor.
Alongside past executives including former chief executive
Bob Diamond, the list features some of the bank's most senior
and high profile figures including Rich Ricci, who heads up the
investment bank and Finance Director Chris Lucas.
Ricci told UK lawmakers investigating the scandal in
November that he was originally a witness in the Libor
investigation by regulators, but was cleared. He was then able
to lead the bank's internal investigation into the affair.
The American, who was one of Diamond's inner circle and
helped build up the investment bank, has been asked by new Chief
Executive Antony Jenkins to conduct a reputation-based review of
all of Barclays' investment banking activities.
Tim Lord, a lawyer representing Guardian Care Homes, cited
documents during a preliminary court hearing on Thursday
referring to communications from the "31st floor" - the part of
Barclays headquarters in Canary Wharf, London, occupied by
The documents referred to "internal political" pressure to
set borrowing rates low in a bid to paint a rosier picture of
the bank's financial health.
"Guidance, if you can call it that, from the 31st floor is
that we don't stick our head above the parapet in any
circumstance," read a November 2007 email by Miles Storey, a
manager in Barclays' treasury department.
Judge Julian Flaux told the court the documents "showed some
debate at a fairly high level within the bank".
The list of 25 names mentioned in the documents included
former chief operating officer Jerry del Missier, former
compliance head Stephen Morse, money markets desk head Mark
Dearlove and former group treasurer Jon Stone.
The publication of the names followed the release of a wider
list of 104 names on Thursday after the judge rejected a request
that they remain anonymous during the preliminary hearing for
The wider list included employees whose email accounts were
disclosed to the regulatory authorities, but it is not suggested
in the regulatory findings that they were implicated in the
fixing or manipulation of Libor.
Twenty-four of the 25 had requested anonymity prior to
publication of the list - the exception being former Barclays
trader Jay Merchant, who went on to become head of swaps trading
at UBS before leaving his position last August.
Meanwhile Jenkins is due to announce the results of a
strategic review of Barclays on Feb. 12. He has already told
staff to leave if they do not want to sign up to a new set of
standards aimed at rebuilding the bank's reputation after a
string of scandals.