U.S. Secretary of the Treasury Timothy Geithner defended his response to concerns about Libor manipulation in 2008 – when he served as president of the New York Federal Reserve – before Congress yesterday. When asked what action was taken after receiving information about possible rate-rigging in 2008, Geithner said:
“…We took a very careful look at these concerns. We thought those concerns were justified and we took the initiative to bring those concerns to the attention of the broader US regulatory community, including all the agencies that have responsibility for market manipulation and abuse…”
Geithner faced harsh criticism from members of the House, and testifies today in a second congressional hearing. The Wall Street Journal posted a short video of Geithner testifying about Libor at yesterday’s congressional hearing. (Subscription to the WSJ may be required.)