Labour cries victory as outcome clears Balls of backing rate scam

Tim Wallace
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ASTOUNDED MPs expressed shock last night at Paul Tucker’s evidence, struggling to accept the Bank of England deputy governor’s claims that Libor manipulation is not a problem for the Bank to deal with.

Meanwhile Labour politicians claimed vindication, arguing Tucker has cleared ex-ministers of any wrongdoing.

Tucker repeatedly stressed that no pressure was put on him by ministers to tell banks to falsely enter low Libor submissions.

That runs counter to chancellor George Osborne’s claims last week that top Labour figures were “clearly involved”.

“It is now absolutely clear that the chancellor’s allegations last week were totally false and completely without foundation,” said shadow chancellor Ed Balls.

George Osborne should now publicly apologise.”

Meanwhile Treasury select committee (TSC) member Andrea Leadsom MP expressed shock at Tucker’s claims that the Bank of England has no responsibilities around the setting of Libor.

“I am astonished Paul Tucker said that Libor does not really matter, and that if submissions were falsified, it was not the Bank’s problem,” she told City A.M. “Nobody appears willing to say they knew what was going on, or to take any responsibility.”