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[–] goodluvin 0 points 3 points (+3|-0) ago 

Fed to Barclays: Lower your Libor rate submission quotes.

Classic Catch 22..

Trader: If I lower my rates, I admit manipulation.
Else, If I don't, I piss off the Federal Reserve and my boss. Likely be out of a job.

Bottom line:
Fed should never have called Barlcays to ask them to lower the rates. But no one at the Federal Reserve is even being mentioned for any wrong doing.

Barlcays had higher rates because they are/were a smaller bank. Hence riskier.
Original quotes were valid.