Geithner Proposed Libor Changes in 2008 Memo to Bank of EnglandSubmitted by DeMolay on Fri, 07/13/2012 - 02:34
Timothy F. Geithner in 2008 sent the Bank of England recommendations for improving calculations of the London interbank offered rate, now at the center of a scandal over allegations the benchmark was manipulated.
Geithner, the U.S. Treasury secretary who was president of the Federal Reserve Bank of New York at the time, sent Bank of England Governor Mervyn King six recommendations. One was to “establish and publish best practices for calculating and reporting rates, including procedures designed to prevent accidental or deliberate misreporting,” according to a memo obtained by Bloomberg News.
Enlarge image U.S. Treasury Secretary Timothy F. Geithner
Members of Congress are seeking information from U.S. regulators about the scandal that prompted Barclays Plc (BARC) Chief Executive Officer Robert Diamond to quit last week after the U.K.’s second-biggest lender was fined a record 290 million pounds ($448 million) for attempting to rig interest rates. At least a dozen banks are being investigated for manipulating Libor, the global benchmark for $360 trillion of securities.