Sir Mervyn King, the Governor of the Bank of England, has warned in a speech tonight that "growth in quarter four will almost certainly turn out to have been considerably weaker than in quarter three" when figures are published on Friday.
The outgoing Bank of England Governor Sir Mervyn King has welcomed the appointment of Mark Carney:
I am delighted to welcome Mark Carney as my successor.
He represents a new generation of leadership for the Bank of England, and is an outstanding choice to succeed me.
Since Mark became Governor of the Bank of Canada, I have worked closely with him and admired his contributions to the world of central banking, in which he is widely respected.
Chancellor George Osborne and the Governor of the Bank of England Sir Mervyn King have announced a £35 billion cash grab by the Treasury that will help to boost the economy, according to The Times.
The Federal Reserve Bank of New York contacted Bank of England Governor, Sir Mervyn King, in 2008 to make recommendations about Libor rates and increasing its accuracy, according to an e-mail dated 1 June 2008.
It was sent to Sir Mervyn and his deputy Paul Tucker by the then president of the Federal Reserve Timothy Geithner, who is now the US treasury secretary.
Mr Geithner called for six changes he believed would improve the integrity of Libor.
The Treasury Select Committee is meeting on Tuesday 17th July at 10.00am:
- Sir Mervyn King, Governor, Bank of England
- Paul Tucker, Deputy Governor, Bank of England
- Donald Kohn, Member, Interim Financial Policy Committee
- Lord Turner, Member, Interim Financial Policy Committee
- Paul Fisher, Executive Director, Markets, Bank of England
I’m pleased that the New York Fed responded to my request in a timely and transparent fashion. We’re reviewing the documents now, and once we’ve thoroughly examined them, we’ll decide how to proceed.
As much as $800 trillion in financial products are pegged to LIBOR, so any manipulation of this rate is of serious concern. We’ll continue looking into this matter to determine who was involved in this practice and whether it could have been prevented by regulators.
Commenting on the proposals for the creation of a Parliamentary Commission on Banking Standards laid before the House of Commons, the head chair of the commission Andrew Tyrie said:
The proposal laid before the House of Commons today to create a Parliamentary Commission on Banking Standards has the support of the leaders of all three major parties. This is vital.
The recent scandals demonstrate the need for higher standards in banking.
The perpetrators of wrongdoing should be held fully accountable for their actions.
It is the fact that so many appear to have got off scot-free that really sticks in the gullet of the electorate.
The actions of a few have impugned the reputations of many.
Hundreds of thousands of people in financial services work hard, honestly and for the benefit of their customers. They deserve better too.
The Federal Reserve Bank of New York has released documents that outline efforts in 2008 to highlight problems with Barclays and Libor and press for reform.
They reveal that senior officials at were aware in April of that year of Libor under-reporting at banks.
The Labour MP John Mann has been responding angrily to being left out of the Parliamentary Commission on Banking Standards. despite being on the Treasury Select Committee.
He has tweeted:
testosterone fuelled banking culture must be tackled to get positive change. Why no women on the Inquiry? Stand aside for Leadsom or Pierce
Tyrie's not put any women on his inquiry. Despite my availabilty I would have happily stood aside for Andrea Leadsom and Teresa Pierce
The Wall Street Journal have reported that Timothy Geithner, former president of the Federal Reserve Bank in New York sent a private memo to Bank of England Governor Mervyn King in 2008, calling for six changes that he said would improve the integrity of the Libor rate.
The latest disclosure makes clear that Federal officials were aware of irregularities in the Libor interest-rate market. The Geithner recommendations, which came in a June 1, 2008, memo, included a call to "eliminate incentive to misreport" by banks.
More documents are due to be released later today by the Federal Reserve Bank of New York, in response to demands by lawmakers for more information about Mr. Geithner's and the New York Fed's efforts to address questions about Libor.