Daily News: July 16, 2012

WSJ: Geithner Questioned Integrity of LIBOR in 2008


Based on a review of a June 2008 memo, the Wall Street Journal said Timothy Geithner sent a private message to Bank of England governor Mervyn King calling for six changes that he said would improve the credibility and integrity of the London interbank offered rate that is now at the center of an international banking scandal.

The Journal said the memo provides a window into the role played by U.S. regulators in the LIBOR scandal, though possibly an incomplete window.
This latest disclosure makes clear that Fed officials were aware of irregularities in the LIBOR interest-rate market. What is less clear is how far Geithner, who was president of the New York Fed at the time, and other officials went to address the problem, the Journal said.

To read the 7/13/12 New York Federal Reserve news release On Congressional request for information on Barclays – LIBOR Matter, click here.

To read the full Wall Street Journal article, click here.