1 note &
It’s easy to blame Libor on the Brits, but not so fast. Ooooops, the Fed knew all about it back in 2007—but didn’t make it a top priority as it scrambled to deal with the nation’s impending financial collapse.
The Federal Reserve Bank of New York may have known as early as August 2007 that the setting of global benchmark interest rates was flawed. Following an inquiry with British banking group Barclays Plc in the spring of 2008, it shared proposals for reform of the system with British authorities.
The role of the Fed is likely to raise questions about whether it and other authorities took enough action to address concerns they had about the way Libor rates were set, or whether their struggle to keep the banking system afloat through the financial crisis meant the issue took a backseat.
(Source: compliancex.com)
