TSC sources on Sunday said Mr Tucker must have known that Royal Bank of Scotland and Lloyds Banking Group were posting false rates because their Libor submissions were lower than Barclays even after they had been locked out of markets and forced to take £60bn in secret loans from the Bank.
For we wouldn\’t have wanted the true Libor rates (infinity % for at least some of the reporting banks) to have been reported.
But it is a bit difficult to call for scalps at one bank over actions one was ignoring, if not encouraging, at others at the same time.
Note, for those who have not been keeping up, that this applies only to the deliberate attempts to talk Libor down during the crisis. This has no effect on the earlier attempted manipulations to favour trading positions.