Geithner made recommendations on Libor in 2008, documents show
Jia Lynn Yang
July 13, 2012
While president of the Federal Reserve Bank of New York, Timothy F. Geithner pressed British regulators to reform the way a critical global benchmark called the London interbank offered rate, or Libor, is calculated, according to a June 1, 2008, e-mail obtained by The Washington Post.
Writing to the head of the Bank of England, among others, Geithner made six recommendations, which included eliminating incentives that could encourage banks to manipulate the rate and establishing a “credible reporting procedure.”
“We would welcome a chance to discuss these and would be grateful if you would give us some sense of what changes are possible,” Geithner wrote.
It’s unclear what other steps Geithner took and whether his efforts stopped any wrongdoing by banks. Last month, London-based Barclays, one of Europe’s largest banks, admitted that it schemed to manipulate Libor during the financial crisis — and its chief executive has asserted that regulators knew about its activities but didn’t do much to stop them. The scandal has led to the resignation of Barclays’s senior executives.
- Geithner Raised Concerns About Rate Setting in 2008 (dealbook.nytimes.com)
- Geithner pressed British regulators in 2008 on Libor (news.yahoo.com)
- Senate Committee to Question Geithner, Bernanke on Libor – Bloomberg (bloomberg.com)
- Geithner pressed British regulators in 2008 on Libor-report (uk.reuters.com)
- With Release of 2008 Memo, Focus Shifts to Geithner in Libor Scandal (nymag.com)
- Bankers shared Libor fear in 2008 (oddonion.com)
- Senate To Question Bernanke And Geithner On LIBOR (dailybail.com)
- Barclays chief Bob Diamond could be brought before Congress, sources say (guardian.co.uk)
- UPDATE 2-Geithner pressed British regulators in 2008 on Libor (uk.reuters.com)
- Geithner questioned Libor process in 2008: report (marketwatch.com)