Monthly Archives: July 2012

Claire Jones

As expected, the Bank of England’s Monetary Policy Committee has announced an additional £50bn-worth of quantitative easing, taking the total stock of asset purchases to £375bn.

Here is the Bank’s statement: Read more

Claire Jones

Paul Tucker can rest easy tonight.

Those awaiting a bloodbath at today’s Treasury Committee hearing will have been sorely disappointed. Claims that Bob Diamond would bring a host of others down with him, among them the Bank of England’s deputy governor, proved incorrect. Read more

Claire Jones

Bank of England deputy governor Paul Tucker wants a chance to give his side of the story over claims he condoned Barclays’ decision to lower its Libor submissions during the financial crisis in a call with former chief executive Bob Diamond. This just out from the Bank:

Bank of England: Paul Tucker has made a request to attend a hearing with the Treasury Select Committee as soon as possible following the publication of settlement agreements by Barclays with the Financial Services Authority, the US Commodity Futures Trading Commission and The United States Department of Justice in relation to the attempted manipulation of LIBOR and EURIBOR. Mr Tucker is keen to give evidence to the Committee in order to clarify the position with regard to the events involving the Bank of England, including the telephone conversation with Bob Diamond on 29 October 2008. Read more

Claire Jones

The staff at the European Central Bank are not a happy bunch. This from the FT’s Frankfurt correspondent James Wilson: 

While it grapples with the eurozone economic crisis from Greece to Ireland, the European Central Bank is also confronting a problem within its Frankfurt headquarters: staff anger at the extra workload because of the crisis.

IPSO, the union among ECB staff, has written to bank president Mario Draghi to warn of risks to the bank from a growing number of long-term absences and stress-related illness. It wants the bank to take on more staff.

According to the trade union, Read more

From Barclays’ written submission to the Treasury Select Committee. Click for better legibility.

 Read more

Claire Jones

Even if that call between Paul Tucker and Bob Diamond had never taken place, the Bank of England was bound to be dragged into the Libor scandal at some point. The Bank’s official documents are littered with references to the rate.

As mentioned here, the Bank – like other monetary authorities around the world – uses Libor to help work out how much money it needs to pump into the financial system. The Bank sees Libor as one of the most important, if not the most important, gauges of financial stability.

Such faith in Libor is misplaced, even if the rate were not manipulated. Read more

Claire Jones

No-one could accuse the governor of the Bank of England of following the lead of his counterparts in the private sector and awarding himself a bumper pay rise. In fact, the Bank’s annual report, out today, reveals Sir Mervyn took home less in  2011/12 than he did during the previous financial year.

His deputies, Charlie Bean and Paul Tucker, were also paid slightly less. Read more