It beggars belief that the top of Barclays did not know what measures it had to take to pull through. It had to lie about the rates it was paying to borrow money.
This came easily because the practice had become habitual. The London interbank offer rate is set each day at 11am in all the key currencies lent and borrowed in London. Each major bank submits the interest rate it is paying to the British Bankers\’ Association and the average becomes the benchmark rate for most of the world\’s loans and financial contracts.
No, it is not the rate at which they are borrowing. It is the rate at which, in their opinion, they woud be abe to borrow in size.
You might think that this is just another titbit from one famed for pendantry but this is important. It simply is not true that a bank such as Barcays is trying to borrow today, in all currencies and all maturities that make up the various Libors. Thus the system can opny be opinions about what rates woud be if they tried to.
Sure, the Euribor system of others determining what rates they woud end at seems better, but that sti faces the same probem. It\’s an opinion.
Now, did they ie about these opinions? Oh yes, they most certainly did. But they were not, as you allege, borrowing at one rate and reporting another. They were reporting an opinion at which they woud be abe to borrow in size.