Libor-Gate: Obama and Geithner Gotta Go
July 12, 2012 • 6:52AM

As the "LIBOR-gate" revelations rapidly spread across the Atlantic to the United States, the entire explosive package has "Barack Obama and Tim Geithner" written all over it, and could well turn into a shaped charge which explodes right under Obama's political nose — before the Sept. 3 Democratic convention. Not only did the New York Fed, which Geithner headed at the time, have knowledge about the rate fixing, there are plenty of reasons to believe that they were active participants in the whole sordid affair.

Geithner's agenda for April 28, 2008, when he was head of the New York Fed, had a meeting listed on "Fixing LIBOR." A Reuters wire now reports that that 2:30-3:00 p.m. meeting was called with at least eight senior Fed staffers invited, including William Dudley, then head of the Markets Group at the NY Fed and who succeeded Geithner as NY Fed head. Also invited was James McAndrews, a Fed economist who three months later, in July 2008, published a report questioning whether or not the LIBOR rate was being manipulated.

A few months earlier, in March 2008, the BIS had also published a paper raising the issue of possible LIBOR rate fixing. On April 16, 2008, the Wall Street Journal ran an article casting doubt on the accuracy of the LIBOR rates. So it was pretty much an open secret that "fixing" was indeed going on. How could it be otherwise? In reality, it was all just "business as usual." The Board of the rate-setting British Bankers Association is made up of senior executives from the following major banks:

Barclays Bank plc
BNP Paribas
Citibank NA
Credit Suisse
Deutsche Bank AG
Hampshire Trust plc
HSBC Bank plc
JP Morgan Europe Limited
Lloyds Banking Group
Santander UK plc
Standard Chartered Bank
The Royal Bank of Scotland plc

The July 10 edition of Huffington Post compared Geithner's calendar and the Barclay's calendar released for the recent hearings at the British House of Commons, and note that Barclays listed 12 separate meetings with Fed officials between August 2007 and October 2008 — including an Oct. 10, 2008 meeting between Geithner and Barclays CEO Bob Diamond. The subjects of those meetings are not reported, but may have been on LIBOR, Barclays takeover of Lehman Brothers, or other matters. But Geithner clearly met repeatedly with Barclays, and "the meetings raise questions about just how much Geithner knew about the alleged manipulation of LIBOR," Huff Post writes.