Geithner email raises new Libor questions

Commenting on reports that Timothy Geithner, now US Treasury Secretary, pressed the Bank of England to make changes in the way that Libor was set as early as June 2008 escalate questions over why investigations were not launched earlier on the rate-rigging scandal the SNP’s Treasury spokesperson Stewart Hosie MP said.

Mr Hosie said:

“Reports that Timothy Geithner pressed the Bank of England to make changes in the way Libor was set in 2008 escalate the questions over who knew what and why action was not taken earlier on the rate-rigging scandal.

“It is clear that problems with Libor - reported in the FT in September 2007 – were no secret in City circles yet we are supposed to believe that nobody in Downing Street at the time or the FSA knew what was going on.

“We need to know how detailed the discussions were between Central Banks, between the regulators at the FSA and their US counterparts, as well as between Ministers and Officials at the Treasury. These are exactly the questions that we need to get to the bottom of.

“This is exactly why the SNP wanted an independent judge led and wide-reaching inquiry to root out the issues and bring all parties involved to account.”