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Bank of England chief says NY Fed cited no evidence of LIBOR fraud in 2008
LONDON (AP) ¯¯¯ The governor of the Bank of England says U.S. authorities had not shown him any evidence of manipulation of a key market index when they raised concerns in 2008.
Mervyn King told a House of Commons committee Tuesday that during the 2008 financial crisis, there were lots of concerns being raised about what the London interbank offered rate, or LIBOR, was indicating about the state of banks. However, there were no fears being voiced about misreporting.
Committee member Michael Fallon pressed King on why Geithner, then president of the New York Federal Reserve, in 2008 proposed "procedures designed to prevent accidental or deliberate misreporting."
King said, "That isn't the same as saying you've got evidence that there is misreporting, nor did the Fed or anyone else send us any evidence of misreporting."