By Ben Lucas
Conservative MP David Davis has called for a review of state agencies’ role in the investigation and prosecution of traders for rigging Libor ahead of new evidence that is set to be released next week.
The evidence, Davis said, will come from a new book on the Libor scandal by BBC economics correspondent Andy Verity called ‘Rigged’, which the Times will publish extracts of on Monday.
“It will show that British and US authorities covered up state involvement in Libor rigging, and the scapegoating of 37 low and middle-ranking bankers, some of whom spent years in jail,” Davis said, speaking in parliament today.
Davis also said some state agencies, which he didn’t name, may have misled parliament about the Libor investigations.
“I am also greatly concerned that the Treasury Select Committee may have been misled by state agencies about the knowledge and involvement of the state in setting false rates,” Davis said.
Davis said he would refer the matter to both the Metropolitan Police and Treasury Select Committee.
The UK’s Serious Fraud Office (SFO) convicted a total of nine traders for their role in rigging London Interbank Offered Rate, known as Libor, including former UBS and Citigroup trader Tom Hayes.
Hayes has long been campaigning to have his conviction overturned, with the Criminal Cases Review Commission set to rule on his application in the coming months.
Two former Deutsche Bank traders’ convictions were overturned on appeal in the US last year, after the prosecution government “failed to show that any of the trader-influenced submissions were false, fraudulent or misleading”.
The SFO, Financial Conduct Authority and the Bank of England were all contacted for comment.
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