Geithner Warned Brits About Libor

In an effort to keep the Libor scandal that has engulfed London from engulfing certain Washington officials, the Federal Reserve of New York will release documents on Friday that detail its response to concerns raised about the global interest rate. In 2008 Treasury Secretary Timothy Geithner, who was then head of the Federal Reserve Bank of New York, suggested that the head of the Bank of England reform Libor and eliminate incentives that encouraged banks to manipulate the rate. A spokesperson for the Federal Reserve of New York said that the documents to be released on Friday “will show that the New York Fed took prompt action four years ago to highlight problems with Libor and press for reform.”