24 votes

Zero Hedge: Federal Reserve Admits It Knew Of Barclays Libor "Problems" In 2007 And 2008

Last Tuesday we suggested that "Now The Fed Gets Dragged Into LiEborgate" when we observed that "Barclays also cited subsequent research by the New York Federal Reserve staff members that, according to the lender, concluded that banks’ Libor quotes were systematically below their borrowing rates by 39 basis points after the Lehman bankruptcy. “Barclays own submissions for tenors of 1 month to 1 year Libor were higher than actual Barclays trades on 97% of the occasions when Barclays had actual trades during the financial crisis,” the lender said." It seems that unlike the BOE, which had no idea of any Barclays problems and was merely calling up Diamond now and then to make sure the bank's money market risk mechanisms were operational and to chit chat about the weather (as per the BOE at least), the Fed has decided to take the high road and openly admit it was well aware of Barclays' LIBOR "problems." And like that the Senatorial circus just got exciting, while that popping noise is bottles of Bollinger going off at every class action lawsuit legal firm.

From Bloomberg:

The Federal Reserve Bank of New York was aware of potential issues involving Barclays Plc and the London interbank offered rate after the financial crisis began in 2007, according to a statement from the district bank.

http://www.zerohedge.com/news/federal-reserve-admits-it-knew...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

It's all done by design to

It's all done by design to end capitalism. It is just another part of Agenda 21.

I am shocked, shocked!

I am shocked, shocked! to find that bank fixing is going on here!

Fed. Renault, new Casablanca remake.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Just in time for "Audit the Fed" legislation to pass the House.

Anyone taking bets on whether it passes the Senate?

And yet,

it was widely publicized at the time that the high LIBOR rates were causing the problem, and this was used as one of the "reasons" why the US taxpayers "needed" to be "urgently" bilked out of trillions of dollars to "free up" the banks to loan to each other again.

Increasingly, this seems to be all an interconnected scam which the banksters all colluded together in probably the largest financial scam in the history of the world.

Heads need to roll.

reedr3v's picture

bump

.