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Over the period of the financial crisis, the estimates of its borrowing costs submitted by Barclays were generally among the top four in the LIBOR panel (see chart 2).
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One Barclays executive interpreted a memo from Mr Diamond, written after a telephone call with Mr Tucker in the autumn of 2008, as a sanction to "lowball" estimates of Barclays' borrowing costs so as to assuage fears about its solvency.
Barclays and, apparently, many other banks submitted dishonestly low estimates of bank borrowing costs over at least two years, including during the depths of the financial crisis.
That same year a group of American academics circulated a paper showing that banks' individual estimates of their borrowing costs were surprisingly close, given their different levels of risk.
However, individual banks will no longer be able to see each others' estimates of their borrowing costs - which are used to calculate Libor - on the day of submission.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com