Well, I’m sure that it comes as no surprise that Barclays weren’t the only ones involved in the LIBOR rate fixing scandal but U.S Treasury Secretary Timothy Geithner is being dragged into the mix as someone who not only knew it was going on, but neglected his regulatory role with the New York Fed to do anything about it.

Not only is Geithner ‘dead meat’ for his role in covering up and perpetuating LIBOR rate fixing (recall Geither held a meeting in 2008 with Fed officials to fix LIBOR), but Jamie Dimon and JP Morgan (along with BOA) are likely to be to be dragged into the scandal as well as it intensifies this side of the pond over the coming weeks.
As the LIBOR “Crime of the Century” is unfolding internationally, it will mean the end of the career, and possibly prison time, for Timothy Geithner, currently U.S. Treasury Secretary, and formerly President of the New York Federal Reserve branch. Lyndon LaRouche’s characterization of Geithner as “dead meat,” is not extreme, considering that former New York Governor Eliot Spitzer, in an interview, compared Geithner’s role in covering up LIBOR’s rigging of interest rates to the cover-up of the crimes of former football coach, and convicted serial child molester, Jerry Sandusky, by his employers at Pennsylvania State University!
Geithner’s role emerged during testimony by Barclay’s former CEO, Robert Diamond, before a British Parliamentary inquiry. Diamond revealed that Barclay’s had been in contact with the New York Federal Reserve branch, about the rigging of interest rates, when Geithner was its President. The NY Fed, which oversees Wall Street, has a special regulatory role, as a watchdog agency. Yet, a series of emails released, following Diamond’s testimony, shows that Fed officials – including Geithner – were not only aware that the LIBOR banks were rigging interest rates, and did nothing to stop it, but later rewarded those same banks, with trillions of dollars in bailout funds and credits.
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Geithner personally sent an email to British authorities on June 1, 2008, suggesting they “strengthen governance and establish a credible reporting procedure.” He added that it would be necessary to “eliminate incentive to misreport.” Thus, Geithner knew that the “reporting procedure” was flawed, as it involved flagrant lying about the rates reported by LIBOR. As to eliminating “incentive to misreport,” why were no criminal charges brought against those involved, which would have been a strong, and legitimate, disincentive?

Geithner was rewarded by being appointed Treasury Secretary by Obama, and has continued the cover-up to this day!

With calls for further investigation into the LIBOR scandal, can Geithner survive the fallout?

Source: sgtreport

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