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Wednesday, July 11, 2012

Senate Committee to Question Geithner, Bernanke on Libor - Bloomberg

As president of the New York Federal Reserve before and during the financial crisis, Treasury Secretary Timothy Geithner met repeatedly with Barclays officials, according to documents released by the bank and the New York Fed. Though the subject of those discussions is unknown, they came at a time when Barclays was also talking to New York Fed officials about problems with an interest rate known as Libor, some five years before the bank agreed to pay $450 million to settle charges that it manipulated that interest rate.
The meetings raise questions about just how much Geithner, now the U.S. Treasury secretary, knew about the alleged manipulation of Libor, a critical interest rate that affects borrowing costs throughout the economy -- questions he'll have to answer at a Senate hearing later this month. They could also renew criticisms of Geithner as being too chummy with the banking sector he was charged with regulating in his role at the Fed."
Senate Committee to Question Geithner, Bernanke on Libor - Bloomberg

"The New York Fed was aware of potential issues involving Barclays and Libor after the financial crisis began in 2007 and told authorities in the U.K., according to a statement from the district bank."

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