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Former Atlanta Fed Executive Vice President Robert Eisenbeis on what federal regulators knew about the libor scandal.
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I'll take care they kept.
So we've talked a lot about it we'll talk more about the president by the way if you -- the we talked a lot about this Barkley is interest rate raking scandal that's happening over in the UK we told you might explode into a huge story here in the US.
One that in the second but just here in the last hour Paul Tucker testifying in front of the British parliament -- -- Paul Tucker.
-- the Bank of England's deputy governor that up Bob Diamond -- called -- through under the bus.
-- the former Barkley CEO who testified.
Last week -- Bob Wise advice is back with this a former executive vice president with the Atlanta fed now with Cumberland advisors.
They should talk about the role possibly the Federal Reserve and all this -- -- start with this guy Tucker.
Apparently you're a conversation he had with Bob -- -- -- -- Barkley is is what's gonna be in question here and explain to us why this might be said chip.
A big deal that kind of a wink and a nod to Tucker said to diamond hate -- low.
These interest rates when you put your -- in.
There are two aspects of it really one is.
The indications from the Central Bank.
To an institution that is is.
An English institution.
To perhaps.
Consider.
What it's doing as far as as Libor postings the second part is that apparently this call was made on behalf.
Of people and White Hall so there's two elements of government involved here and the the way I look at this is.
This is the movie trailer that we saw that the movie is yet that could to be released.
That's what I wanna ask you about so why halls this -- a British.
Our government to Libor serrated question London and in a back -- rate that that people are talking about the banks put their bids in an accusation -- -- all -- they all got together to think he.
Let's keep these rates lower let's put the rate up.
A little bit now the Central Bank in the UK is story what's -- gonna be called into question and say.
That the Federal Reserve may have some questions to answer what are that.
Well I think the question really is what the coordination was -- was not between the British the ECB and that's.
The Federal Reserve when it comes to.
Knowledge that they had about what was going on what we just don't know how hard it goes and how far deep it is really.
In terms.
What they knew and then and when they -- -- we healthy relation some of the settlement the Barkley sure that the Feller of kinda knew what was going on -- thing or maybe even encourage them to do it do we know that.
An indication that wasn't some of that FSA documents in particular that.
Regulators.
Not only in the UK but otherwise we're in fact informed and aware.
That there were some of these activities going on right.
We we know that.
How big a scandalous is going to be would you say -- characterize it.
-- well I think this is potentially huge there are already lawsuits that are pending.
This is.
A big money business we're talking about potentially 800 trillion or are more that's.
More than even Zimmerman woods is saying is there's a billion here and a billion yeah.
So there's a lot at stake and I think there's a lot of investors a class action suits I think it is going to be coming out of the woodwork here arts of the Scott Paul Tucker's on the hot seat today and many more.
Now we'll be sitting there in the future it sounds like Bob bison -- these days from Cumberland thank you very much.
