Bank of England chief who became embroiled in the Libor interest rate scandal is handed an honour

Paul Tucker, 55, was rewarded for services to central banking He quit this year after missing out on the Bank's top job
By Hugo Duncan PUBLISHED: 23:02, 30 December 2013 | UPDATED: 23:03, 30 December 2013

Form er Deputy Governor of the Bank of England Paul Tucker w as rew arded in the honours list

Paul Tucker, the former deputy governor of the Bank of England who became embroiled in one of the biggest banking scandals of recent years, is to be knighted. The 55-year-old, who quit this year after missing out on the top job, said it is a 'great honour' to be rewarded for services to central banking. Mr Tucker spent more than three decades at the Bank and was the favourite to succeed Lord King as Governor last July but lost out to Canadian Mark Carney.

It has been suggested that his chances were damaged by his involvement in the Libor interest rate rigging scandal and his closeness to disgraced former Barclays boss Bob Diamond. Mr Tucker fiercely denied that he had sanctioned attempts by Barclays to manipulate its borrowing costs downwards in 2008 as the bank battled to stay afloat in the financial crisis. He insisted that the rigging of interest rates came as 'a deep shock' and described the market as a 'cesspit'. The rate fixing scandal - one of the most damaging to hit the industry in the wake of the financial crisis cost Mr Diamond his job and Barclays 290million in fines. Mr Tucker survived but the decision to knight him in the New Year Honours List is likely to raise eyebrows in some quarters. Although there was no evidence of any wrongdoing by Mr Tucker or the Bank, he was accused of being asleep on the job despite repeated warnings that Britain's banks were fiddling key interest rates. But others will point to his long and distinguished career at the Bank and his work in putting in place safeguards to shore up the financial system against future banking crises. Welcoming his knighthood, Mr Tucker said: 'This is a great honour: a tribute to the people with whom I worked for many years in the pursuit of stability, without which the economy cannot flourish.' Mr Tucker joined the Bank in 1980 after graduating from Cambridge and in 2002 became executive director for markets, a position he held during the financial crisis.

Tucker, 55, spent m ore than three decades at the Bank and w as the favourite to succeed Lord King as Governor last July

He became deputy governor in charge of financial stability in 2009 but left last October to take up a

senior fellowship at Harvard. Announcing his departure, he said: 'It has been an extraordinary honour to serve at the Bank of England over the past thirty years. 'I am very proud that, through the Bank and the wider central banking community, I have been able to make a contribution to monetary and financial stability.' In an interview last October, he said of the Libor controversy: 'I did absolutely nothing wrong and I don't think anyone thinks I did anything wrong.'

Comments (6)
Share what you think Newest Oldest Best rated Worst rated View all A vote for UKIP is, a vote for Britain, United Kingdom, 4 hours ago Disgusting.

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Click to rate COLIN MAGOR, MAGOR, 4 hours ago BANKSTER

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Click to rate Kevin, Blackburn, United Kingdom, 4 hours ago Let me get this right ,I'm only a simple lad , but this man has been given a reward for his contribution to the banking industry , why .

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Click to rate lessa, stalybridge, United Kingdom, 4 hours ago In an interview last October, he said of the Libor controversy: 'I did absolutely nothing wrong and I don't think anyone thinks I did anything wrong.' Except the general public who trusted you and the bank to safeguard our interest rates and the market.

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0 74 Click to rate Charaku, Sapporo, Japan, 4 hours ago Shame Britain Shame.

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Surfmist, London, United Kingdom, 4 hours ago This is what throws the honours system into disrepute !

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