The chairman of the House Financial Services Oversight and Investigations Subcommittee told the New York Federal Reserve Bank Monday that he wants more information about the handling of banks' alleged "manipulation and suppression" of the London Interbank Offered Rate (LIBOR).
In a Monday letter to the Fed branch's president, William Dudley, the subcommittee chairman, Rep. Randy Neugebauer, R-Texas, said that the previous information Dudley had presented revealed that the New York Fed knew that certain financial institutions were "not posting honest LIBOR rates." He said the documents showed that the Fed "worked to identify flaws in the way LIBOR was set and subsequently made recommendations for enhancing the credibility of the rate to the Bank of England."
However, Neugebauer told Dudley that "what is less clear" was how the Fed "dealt with admissions of market manipulation by LIBOR-contributing banks."
