LIeBOR; More Roaches Surface


Now this is interesting….

Timothy Geithner in 2008 sent a private memo to Bank of England Governor Mervyn King calling for six changes that were meant to improve the credibility and integrity of the London interbank offered rate, a key interest rate that is now at the center of a international banking scandal, according to documents reviewed by The Wall Street Journal.

That would make him President of FRBNY, as that pre-dates the inauguration.   But it gets better:

The recommendations, which came in a June 1, 2008, memo, included a call to “eliminate incentive to misreport” by banks.


Now let’s see if I’m analyzing this correctly:

You work for an alleged regulatory organization.  Your job is to enforce laws and regulations in that regard.

And it appears there is written evidence that you were aware that the numbers being reported were intentionally wrong, as you want to “eliminate incentive to misreport” (specifically, how did you know such incentive existed unless you detected it?)

I am willing to bet that there is no legal responsibility for The Fed to report suspected market manipulation that might be felonious to anyone over at Justice…..  am I right?

And if so, why doesn’t such a requirement exist when if a simple teller transaction at my local bank, if it “appears suspicious”, must be reported to the authorities, in writing on a SAR form?

That’s what I thought.

PS: Are you still wondering why you’ve been getting robbed?

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