The plot thickens:
The British Bankers’ Association (BBA) issued a warning to banks in April 2008 to “submit honest rates” to its Libor setting panel, according to a series of emails which demonstrate that the problems with the crucial interest rate were being discussed at the highest level during the financial crisis.
The emails also show the etiquette inside the Bank, where the governor Sir Mervyn King is referred to as “G”. His handwriting is shown in comments written on email printouts, and he addresses the recipients as “Mr” rather than by their first names.
In one response, in May 2008, King describes proposals put forward by the BBA as “wholly inadequate … What should we do”. By July 2008, King says discussions sound “quite constructive”.
The BBA’s warning in April 2008 followed a report in the Wall Street Journal that banks were reducing submissions “for fear of looking desperate for cash”.
Lehman Brothers declared bankruptcy September 15th 2008!
One thing is that we in the crackpot brigade might sound the alarm without being noticed – quite another thing is to count the CEO’s of FED and BoE as chipped china.
As the British Central Bank (The Bank of England) cannot claim ignorance or oversight the question remains: What did they do to rectify? And what action did the banks take as a result of the concern presumably expressed?
Did the banks mislead, misdirect or downright lie to the Goverment, Parliament and authorities? – and in a matter of vital national interest!
This could make Richard Nixon and the Watergate Scandal look good by comparison.