Former SIGTARP Inspector General Neil Barofsky told Yahoo Finance today in an interview that the TBTF banks collaborated in a ‘global conspiracy regarding LIBOR rate fixing, and that Geithner & other regulators who knew about the price fixing and looked the other way (or even encouraged it) should be held accountable, fired across the board, and placed in handcuffs.
While we agree with Barofsky that Geithner, Bernanke, and Co. SHOULD be led away in cuffs over LIEBORGATE, in reality Geithner has about the same odds of incarceration for his crimes as Jon Corzine.
While Geithner pushed for broader reforms of LIBOR, he did not explicitly warn of possible rate manipulations and neglected to notify U.S. regulators at the Department of Justice, the Commodity Futures Trading Commission and Securities and Exchange Commission to the wrongdoing, notes Barofsky.
It was a “message to the banks ‘if we commit fraud, we break the rules, don’t worry, we’re too big — they’ll never bring the appropriate steps against us,’” Barofsky says in an interview with The Daily Ticker. “And that is why we’ve had scandal after scandal after scandal.”
This was a “global conspiracy to fix one of the most important interest rates in the world,” Barofsky continues. “[Geithner] heard this information and looked the other way. Geithner and other regulators should be held accountable, they should be fired across the board. If they knew about an ongoing fraud, and they didn’t do anything about it, they don’t deserve to have their jobs. I hope we see people in handcuffs.”
Full Barofsky interview: