Yesterday, a House committee sent its third document request to the New York Fed, then headed by Tim Geithner, on the LIBOR fraud. The letter was sent to the New York Federal Reserve, demanding that it supply to Congress their past records relating to LIBOR fraud, covering the period August, 2007 through July 20, 2012. The letter was sent by Rep. Randy Neugebauer (R-Texas), Chairman of the Subcommittee of Oversight and Investigations, of the House Financial Services Committee. This further turns up the heat on Tim Geithner, who testifies tomorrow before the full Committee, and before the Senate Banking Committee Thursday, to present, as Treasury Secretary, the annual report of the Financial Stability Oversight Council. Geithner came into the Obama Administration, from being head of the New York Federal Reserve.
Geithner is already on the run from specifics released earlier this month from the New York Fed, of 2008 correspondence from Geithner to Bank of Emgland chief Mervyn King, expressing CYA-concern about LIBOR rate-rigging, while showing that Geithner had been directly involved in setting the rules by which the LIBOR has been rigged since 2008.
Now, Neugebauer wants more. His letter states that the information provided so far, still leaves, "many outstanding questions that merit further investigation." He set the deadline as September, for the NY Fed to provide all communications about LIBOR from August, 2007 to the present, among all New York Fed employees, and between them and employees at any of the 16 banks that set the LIBOR U.S. dollar rate, and any U.S. and foreign government agencies.
The letter, whose text was released, states that, "The documents you provided to the Subcommittee revealed the the NY Fed was made aware that certain financial institutions were 'not posting honest LIBOR' rates.... WHAT IS LESS CLEAR IN YOUR RESPONSE IS HOW THE NY FED DEALT WITH ADMISSIONS OF MARKET MANIPULATION BY LIBOR CONTRIBUTING BANKS. AS YOU KNOW, THE ROLE OF GOVERNMENT IS TO ENSURE THAT OUR MARKETS ARE RUN WITH THE HIGHEST STANDARDS OF HONESTY, INTEGRITY, AND TRANSPARENCY. THEREFORE, ANY ADMISSION OF MARKET MANIPULATION—REGARDLESS OF THE DEGREE—SHOULD BE SWIFTLY AND VIGOROUSLY INVESTIGATED." [emphasis added]