According to Sky News lawyers advised Directors at Barclays not to withhold the £8.75m award to Jerry del Missier.
FSA executive chairman Lord Turner has told the Treasury Select Committee that Bob Diamond was aware of a letter detailing issues with Barclays' culture.
Mr Diamond previously told MPs that he had not known about the letter sent to the bank in April warning over its "aggressive" stance on regulation.
The Financial Services Authority (FSA) has released details of a meeting held with Barclays' board in February.
The FSA found its business model and earnings were challenged by the economic and regulatory environment.
It also highlighted how market perceptions continue to affect the bank's standing.
- Material economic exposures within vulnerable Eurozone countries.
- New banking proposals pose challenge to the business and Barclays' operating model.
- Capital is tight given forthcoming regulatory changes plus new expectations.
- There is still considerable work to make Barclays resolvable.
Jerry del Messier has told the Treasury Select Committee that he did not know fixing the Libor rate was against the law.
Conservative MP David Ruffley tried to make him admit that what he had sanctioned was illegal.
Jerry del Missier insisted he did not think he was acting as a fall guy for Bob Diamond or for anything.
He told the committee, that as far as he was aware, he was not being investigated by any authority in the US or the UK.
Mr del Missier said he could understand resentment to Barclays as a result.
Jerry del Missier has admitted to the Treasury Select Committee, that in retrospect, Barclays' decision to fix Libor rates was improper.
The bank's former chief operating officer told MPs that he regretted that the action had sullied the company's reputation.
Mr del Missier told MPs he believed the Bank of England alone instructed Barclays to lower Libor submissions.
Bob Diamond previously told the committee that he did not believe the Bank of England instructed them to lower the inter-bank lending rate, and he had not instructed Mr del Missier to do so.
Jerry Del Missier has downplayed the significance of Barclays fixing its Libor rate, given the other events that were happening at the time.
Jerry Del Missier has told MPs that the decision to lower Libor submissions in the midst of the financial crisis seemed "appropriate".
The Canadian banker said he "fully expected" staff to take into account the views raised by the Bank that the bank's rates were too high.
However, he told the Treasury Select Committee that he only spoke to the head of the money market desk and did not follow up to check what effect his instruction had on Libor submissions.