Wednesday, July 11, 2012

US Feds Knew About LIBOR in 2007

Pay attention to this because it explains why regulators are no guarantee of good behavior. In 2007, New York Fed was told about problems with Libor
Barclays’ regulator in the United States is the Federal Reserve Bank of New York, which was run at the time by current Treasury Secretary Timothy F. Geithner. Diamond said that his bank had alerted the New York Fed to issues with Libor at least 12 times. After receiving initial reports in 2007, the New York Fed said, it made additional inquiries of Barclays about its Libor operations, and subsequently made suggestions for changes to British authorities. Geithner personally participated in several conversations with Barclays executives, according to his New York Fed calendar, later posted on the Web site of the New York Times. It wasn’t clear if these meetings focused on the Libor issues now coming to light.

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