- 11 updates
The Federal Reserve Bank of New York contacted Bank of England Governor, Sir Mervyn King, in 2008 to make recommendations about Libor rates and increasing its accuracy, according to an e-mail dated 1 June 2008.
It was sent to Sir Mervyn and his deputy Paul Tucker by the then president of the Federal Reserve Timothy Geithner, who is now the US treasury secretary.
Mr Geithner called for six changes he believed would improve the integrity of Libor.
The Treasury Select Committee is meeting on Tuesday 17th July at 10.00am:
- Sir Mervyn King, Governor, Bank of England
- Paul Tucker, Deputy Governor, Bank of England
- Donald Kohn, Member, Interim Financial Policy Committee
- Lord Turner, Member, Interim Financial Policy Committee
- Paul Fisher, Executive Director, Markets, Bank of England
Commenting on the proposals for the creation of a Parliamentary Commission on Banking Standards laid before the House of Commons, the head chair of the commission Andrew Tyrie said:
The Federal Reserve Bank of New York has released documents that outline efforts in 2008 to highlight problems with Barclays and Libor and press for reform.
They reveal that senior officials at were aware in April of that year of Libor under-reporting at banks.
The Labour MP John Mann has been responding angrily to being left out of the Parliamentary Commission on Banking Standards. despite being on the Treasury Select Committee.
He has tweeted:
The Wall Street Journal have reported that Timothy Geithner, former president of the Federal Reserve Bank in New York sent a private memo to Bank of England Governor Mervyn King in 2008, calling for six changes that he said would improve the integrity of the Libor rate.
The latest disclosure makes clear that Federal officials were aware of irregularities in the Libor interest-rate market. The Geithner recommendations, which came in a June 1, 2008, memo, included a call to "eliminate incentive to misreport" by banks.
More documents are due to be released later today by the Federal Reserve Bank of New York, in response to demands by lawmakers for more information about Mr. Geithner's and the New York Fed's efforts to address questions about Libor.
ITV News' Political Correspondent Lucy Manning has been hearing that the Bishop of Durham has been selected to be a member of the Banking Inquiry committee. The Rt Rev Justin Welby is a former oil industry finance director and finance writer.
Downing Street stressed today that the three main government parties had agreed who would be on the committee for a parliamentary inquiry into the banking industry. The Prime Minister's spokesman said:
Labour MP John Mann has angrily responded to his exclusion at the Banking Inquiry today. Mr Mann said that he would be "setting up his own inquiry" into this "dreadful mess".
Neither Labour MP John Mann nor Conservative MP Andrea Leadsom have been selected to sit on the Parliamentary Commission on Banking Standards, despite their forthright questioning of bankers as members of the Treasury Select Committee.
Latest ITV News reports
ITV News understands that details of the Banking Inquiry led by Parliament have been agreed today.