Secretary of the Treasury Timothy Geitner defended his actions to call attention to the Libor scandal to a skeptical House Financial Services Committee. Geitner insists he notified the Commodity Futures Trading Commission, Securities and Exchange Commission, and the Treasury Secretary in 2008 about concerns with low Libor levels. The House Committee questioned why he never brought the alleged fraud to their attention.
The Committee cited the Fed’s use of Libor as a benchmark in the emergency AIG bailout and other lending programs as a sign that the Fed was not taking the issue seriously. The Fed is providing all communications between it and the Libor-setting banks from August 2007 to the House Committee.
Full content: Reuters
Related content: Why and How Should the Libor Be Reformed?
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