Now Team Obama has leaked some documents to the Times to show that it is all good. And check this comedy gold from the Times:
When Timothy F. Geithner ran the Federal Reserve Bank of New York, he acknowledged fundamental problems with the process for setting key interest rates in the midst of the 2008 financial crisis, according to documents provided to The New York Times.
Mr. Geithner, who is now the United States Treasury secretary, questioned the integrity of the benchmark as reports surfaced that Barclays and other big banks were misrepresenting the rates. In 2008, Barclays had several conversations with New York Fed officials about the matter.
Mr. Geithner then reached out to top British authorities to discuss issues with the interest rate, which is set in London. In an e-mail to his counterparts, he outlined reforms to the system, suggesting that British authorities “strengthen governance and establish a credible reporting procedure” and “eliminate incentive to misreport,” according to the documents.
But the warnings came too late, and Barclays continued the illegal activity.
It was too late!?! How could it be "too late" for such timeless advice as “eliminate incentive to misreport"?
LIBOR is set every business day; since Barclays had manipulated it in the past and the past cannot be undone, they were obliged to manipulate it forever? Really?
Come on - Geithner fired off a CYA memo, nothing happened, nobody followed up, and nobody cared. Until much later, when it was too late.