Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Barclays PLC    BARC   GB0031348658

Delayed Quote. Delayed  - 04/24 05:35:22 pm
219.2 GBp   +5.41%
04/24 Banks boost FTSE as French election ignites risk-on rally
04/24 BARCLAYS : Bank of England 'told about Libor fears in 2005'
04/24 BARCLAYS : Form 8.5 - SKY PLC
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

New York Fed did not condone misreporting of Libor: Geithner

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/26/2012 | 09:56pm CEST

U.S. Treasury Secretary Timothy Geithner said on Thursday that the Federal Reserve Bank of New York did not encourage banks to misrepresent their borrowing costs when setting the key benchmark interest rate Libor when he was the head of the regional Fed bank in 2008.

Geithner, Fed Chairman Ben Bernanke and U.K. banking authorities have come under fire for not doing enough to fix problems with Libor, a rate which is used for $550 trillion of interest rate derivatives contracts and influences rates on a wide array of consumer products such as mortgages and credit cards.

In his second day of testimony to Congress, Geithner reiterated that when he was New York Fed president he told U.S. regulators about the rate manipulation and made recommendations to fix Libor to authorities in Britain where the interest rate is set.

When asked by a Senate Banking Committee lawmaker if the New York Fed turned a blind eye to banks' misrepresentations or if he was aware of any other regulator condoning bankers' behavior, Geithner said "absolutely not."

More than a dozen global banks are under investigation over whether they manipulated the Libor rate in an attempt to make profits or hide weaknesses. Some critics have suggested British regulators not only knew banks were under reporting their borrowing costs but may have encouraged the practice to protect the financial system during the 2007-09 credit crisis.

So far, Barclays is the only bank that has been fined by U.S. and U.K. authorities for manipulating the rate.

The Bank of England's deputy governor, Paul Tucker, was ensnared in the scandal when Barclays released notes suggesting Tucker may have condoned the rigging. Tucker has denied the allegations.

At the hearing, Geithner said he did not know whether the three U.S. banks that help set Libor - Citigroup, Bank of America and JPMorgan Chase - manipulated the rate. Some 16 major banks contribute to setting the key interbank lending rate, which is overseen by a private banking group the British Bankers' Association.

U.S. ACTION

The Financial Stability Oversight Council, which includes every major U.S. financial regulator, is examining other survey-based measures of financial prices and interest rates for manipulation, Geithner said.

The Treasury Secretary added that the powerful financial supervisor, which he chairs, will also need to take a careful look at other parts of the financial system where the market relies on a private entity composed of private firms that has some quasi-regulatory role.

"Have to be careful to make sure that the system is not relying on associations of private firms that leave us vulnerable to the kinds of things we have seen," Geithner said.

At the congressional hearing, Senate Banking Committee members were gentler than their counterparts in the House of Representatives, where some Republicans accused Geithner of dropping the ball.

Republican Senators, however, wanted to know why Geithner did not use his influence as New York Fed chief and then as Treasury Secretary to sound a louder alarm bell on Libor.

"You were aware of this in early 2008 and for the last four years you never used the bully pulpit to warn the American people," said Republican Senator Pat Toomey.

Geithner said he did what he felt was the most effective way to get to the heart of the problem. "There are some problems that you can address by talking about them, but I am of the view that it is better to act on these things and that is what we tried to do," he said.

Congress has been zeroing in on what Geithner knew and when and whether he acted appropriately. Geithner has said he believed he first heard about the rigging in 2008 and then acted quickly after that point. Documents released by the New York Fed showed that Barclays told Fed analysts about possible problems with the low Libor rates as early as August 2007.

(Reporting By Rachelle Younglai; Editing by Padraic Cassidy and Andrew Hay)

By Rachelle Younglai

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BARCLAYS PLC
04/24 Banks boost FTSE as French election ignites risk-on rally
04/24 BARCLAYS : Bank of England 'told about Libor fears in 2005'
04/24 BARCLAYS : Form 8.5 - SKY PLC
04/24 BARCLAYS : Form 8.5 - JOHN WOOD GROUP PLC
04/24 BARCLAYS : Form 8.5 (EPT/NON-RI) BOOKER GROUP PLC
04/24 LLOYDS BANKING : Big banks trio set to report
04/24 *RPT/TRADERS : Macquarie cuts barclays price target to 185 (245) pence
04/24 *RPT/TRADERS : Macquarie cuts barclays to 'underperform' (neutral)
04/22 BREAKING : Barclays Accelerator reveals 2017 Africa programme participants
04/21 *TRADERS : Macquarie cuts price target barclays to 185 (245) pence
More news
Sector news : Banks - NEC
12:17a KINDER MORGAN : Canada files for IPO to raise Trans Mountain funds
04/24 WELLS FARGO HAS SATISFACTORY 'LIVING : Fed
04/24DJWELLS FARGO : N.J. Town Pulls Public Funds From Wells Fargo -- Update
04/24 J&J, Takeda among interested in Brazil's Hypermarcas, sources say
04/24DJWELLS FARGO : Fed, FDIC Say Wells Fargo 'Remediated Deficiencies' in 2015 Living..
More sector news : Banks - NEC
News from SeekingAlpha
04/24 PREMARKET GAINERS AS OF 9 : 05 am
04/24 European banks lead post-election rally; Deutsche up 10%
04/18 FOCUS ON EUROPE : Will Marine Le Pen Become France's Next President?
04/17 The LIBOR Scandal Moves Up The Power Ladder
04/13 LIBOR, Lies, And Damn Lies.
Advertisement
Financials ( GBP)
Sales 2017 22 173 M
EBIT 2017 7 098 M
Net income 2017 2 129 M
Debt 2017 -
Yield 2017 1,49%
P/E ratio 2017 16,05
P/E ratio 2018 9,64
Capi. / Sales 2017 1,60x
Capi. / Sales 2018 1,55x
Capitalization 35 407 M
More Financials
Chart BARCLAYS PLC
Duration : Period :
Barclays PLC Technical Analysis Chart | BARC | GB0031348658 | 4-Traders
Full-screen chart
Technical analysis trends BARCLAYS PLC
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 24
Average target price 2,37  GBP
Spread / Average Target 14%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
James Edward Staley Chief Executive Officer & Director
John McFarlane Non-Executive Chairman
Paul H. Compton Group Chief Operating Officer
Tushar Morzaria Group Finance Director & Executive Director
Reuben Jeffery Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BARCLAYS PLC-6.94%45 350
JPMORGAN CHASE & CO.-2.05%301 902
WELLS FARGO & CO-3.83%265 205
INDUSTRIAL AND COMMRCL..9.07%243 709
BANK OF AMERICA CORP2.76%227 371
CHINA CONSTRUCTION BAN..8.82%199 232
More Results