The Bank of England and Paul Tucker have been drawn back into the Libor scandal amid claims that Barclays used what it believed was a confidential instruction from a former deputy governor to lower rates to buy billions of pounds of debt in rival British lenders at the height of the financial crisis.
In a series of allegations contained in a legal case brought by a caravan company against Barclays over the bank’s representations to and management of the company, including claims that it mis-sold the business an interest rate swap, claims have emerged of how the bank allegedly began building a large sterling position in the debt of other financial companies hours after Mr Tucker spoke to Bob Diamond, then head of Barclays’ investment