Move over Barclays, BOE, and Paul Tucker- US Treasury Secretary Timothy Geithner and the NY Fed’s William Dudley just moved front and center in the escalating LIEBORGATE scandal.
Reuters reports that Geithner, then head of the NY Fed, held a ‘Fixing LIBOR’ meeting with at least 8 Fed officials on April 28th, 2008!
Now that Geithner and Dudley have been fully implicated in the LIEBORGATE, it’s only a matter of time before The Bernank himself is caught up in the scandal.
The entire house of cards is now completely crumbling!
According to the calendar of then New York Fed President, Timothy Geithner, who is now U.S. Treasury Secretary, it even held a “Fixing LIBOR” meeting between 2:30-3:00 pm on April 28, 2008. At least eight senior Fed staffers were invited.
It is unclear precisely what was discussed at this meeting or who attended. Among those invited, along with Geithner, was William Dudley, who was then head of the Markets Group at the New York Fed and who succeeded Geithner as its president in January 2009. Also invited was James McAndrews, a Fed economist who published a report three months later that questioned whether Libor was manipulated.
“A problem of focusing on the Libor is that the banks in the Libor panel are suspected to under-report the borrowing costs during the period of recent credit crunch,” said that report in July 2008 that examined whether a government liquidity facility was helping ease pressure in the interbank lending market.
When asked for comment, McAndrews directed questions to a New York Fed spokeswoman. Dudley could not be immediately reached for comment.