Barclays LIBOR Scandal: The Fed Knew WHEN?

July 10th, 2012
in econ_news, syndication

breaking-news-130pxEconintersect:  A bombshell report from Reuters today (10 July 2012) suggests the Federal Reserve Bank of New York (NY Fed) knew of the LIBOR (London Interbank Overnight Rate) manipulation scandal five years ago.  Here is what Reuters said today:

The Federal Reserve Bank of New York may have known as early as August 2007 that the setting of global benchmark interest rates was flawed. Following an inquiry with British banking group Barclays Plc in the spring of 2008, it shared proposals for reform of the system with British authorities.

The Reuters article gives many details of the criticism now leveled at the Fed for not taking firmer action.

Follow up:

Reuters quotes Stanford University professor Darrell Duffie:

"It appears that some regulators, at least at the New York Fed, indeed knew there was a problem at that time. New York Fed staff have subsequently presented some very good research on the likely level of distortions in Libor reporting," Duffie said. "I am surprised, however, that the various regulators in the U.S. and UK took this long to identify and act on the misbehavior."

Another gem from Reuters:

On Monday, the Bank of England's Tucker called the issue of banks improperly submitting rates a "cesspit."

Paul Tucker, Deputy Governor of the BOE (Bank of England) and a leading candidate to become the next governor, has been under attack for possible implication in the rate fixing scandal (GEI News). Yesterday he faced extensive grilling from Parliament (Daily Beast).

John Lounsbury

Sources:









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved