Charles Gasparino | Tim Geithner ignored epic financial fraud

Posted on July 20 2012 – 10:00 AM – Posted by: Doug Brady

Tim Geithner had evidence of a financial crime of epic proportion — so he  wrote a memo.

That’s about the only way you can sum up the then-New York Fed boss’ actions  several years ago, when he was confronted with fairly compelling evidence that  banks under his direct supervision were manipulating Libor — a key benchmark of  global finance.

The Libor scandal has become pretty big news, with Barclays ousting its CEO  and agreeing to pay a large fine even as it cooperates with civil and criminal  law-enforcement authorities now investigating other big banks.

But it doesn’t end there: There’s also evidence that top regulators,  including Geithner, now Treasury secretary, knew about and largely ignored the  mess.

On Friday, the New York Fed released documents that supposedly exonerate  Geithner. Selective leaks to friendly news outlets ensured kind first-day  coverage, with one headline reading “Geithner tried to curb bank’s rate rigging  in 2008.”

But that’s a bizarrely generous read of Geithner’s action (or inaction) on  learning that Barclays actually admitted to one of his investigators that  it had submitted false data for the computation of Libor, and that other banks  were doing the same.

More.

Article source: http://conservatives4palin.com/2012/07/charles-gasparino-tim-geithner-ignored-epic-financial-fraud.html