I’m pleased that the New York Fed responded to my request in a timely and transparent fashion. We’re reviewing the documents now, and once we’ve thoroughly examined them, we’ll decide how to proceed.
As much as $800 trillion in financial products are pegged to LIBOR, so any manipulation of this rate is of serious concern. We’ll continue looking into this matter to determine who was involved in this practice and whether it could have been prevented by regulators.
The Bank of England Governor Sir Mervyn King was warned about the concerns about the Libor interest rate by the US Federal Reserve in 2008, according to documents released. A parliamentary inquiry into the scandal has been launched.