Geithner-Led Fed Didn’t Do Enough in Libor Scandal: Bair

The Federal Reserve Bank of New York in 2008, headed then by current Treasury Secretary Timothy Geithner, should have done more to investigate big-bank efforts to manipulate global interest rates, former FDIC Chair Sheila Bair told CNBC.

In the latest salvo over the London Interbank Offered Rate — Libor — scandal, Bair called out regulators who knew of efforts by Barclays [BCS  9.90    -0.37  (-3.6%)   ]and others to drive the key rate lower, but did nothing other than offer advice on how to fix the process.

The New York Fed’s role became apparent in a recent document release from the central bank. Transcripts showed Geithner was made aware of, and his office investigated, allegations that the Libor rate was being underreported.

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