May
25
Wall Street’s Interest Rate Scandal
ByAbuse of interest rates and the failure to address the problem is one of the most expensive scandals to hit Wall Street since the financial crisis.
Timothy Geithner, left, the former New York Fed chairman, and Mervyn A. King, the governor of the Bank of England. CreditFrom left: Brendan Hoffman/Getty Images; Chris Ratcliffe/Bloomberg NewsNew York Fed Learns of False Reports
‘We Know That We’re Not Posting Um, an Honest Rate’
A Barclays employee told a New York Fed official that “we know that we’re not posting um, an honest rate.” The employee indicated that other big banks made similarly bogus reports, saying that the British institution wanted to “fit in with the rest of the crowd.”
Although the New York Fed conferred with Britain and American regulators about the problems and recommended reforms, it failed to stop the illegal activity, which persisted through 2009…
