Saturday, February 22, 2014

Wow,The Time Bernanke Sounded Like the Godfather During an FOMC Meeting

From the recently released transcripts of 2008 Fed Open Market Committee meetings:


  1. Answer: which one? Actually, it doesn't matter answer is no.

  2. Fed knew about Libor rigging in 2008
    Senior Fed official first flagged Libor issue at a policy meeting in April 2008, newly released documents reveal

    The US Federal Reserve knew about Libor rigging three years before the financial scandal exploded but did not take any firm action, documents have revealed.

    According to newly published transcripts of the central bank’s meetings in the run-up to and immediate aftermath of the collapse of Lehman Brothers, a senior Fed official first flagged the issue at a policy meeting in April 2008.

    William Dudley expressed fears that banks were being dishonest in the way they were calculating the London interbank offered rate – a global benchmark interest rate used as the basis for trillions of pounds of loans and financial contracts.

    “There is considerable evidence that the official Libor fixing understates the rates paid by many banks for funding,” he said.

    The transcript of the Fed’s April 2008 meeting raises questions about why the central bank did not move to properly tackle the scandal. There was no official regulator for Libor at the time, and officials at the US Federal Reserve tried to blame British authorities for allowing the benchmark interest rate to get out of control in the first place.