Geithner Admits Fed Knew Of LIBOR Manipulation (VIDEO)
In testimony before Congress today, Treasury Secretary Timothy Geithner admitted under oath that the Reserve knew of the LIBOR manipulation:
Despite this knowledge, they still used the LIBOR for the bailout of institutions such as AIG. His dismissal of the use of it, claiming “everyone knew it” in effect is intellectually dishonest, and is wrong. There was speculation, yes, but the New York Reserve, which Secretary Geithner was in charge of during the meltdown, had direct knowledge of the manipulation and yet did nothing.
Due to the use of the LIBOR, when the New York Reserve knew of the manipulation, it has directly cost the US Taxpayer several billion dollars, and the indirect costs are so great that they may never be known. Failure to hold these banks accountable at that time has allowed the culture of corruption on Wall Street to continue unabated. Failure to use due diligence and common sense has resulted in a worsening of the problem, and is the underlying issue at hand as to the economic doldrums in which the world now finds itself.