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You therefrom that is true let's get to this interest rate fixing -- scandal now seems to get bigger by the day as more information comes out and the latest.
Is the Fed what are the Federal Reserve no well its -- the Barclays interest -- fixing scandal up until now but it continues to spread.
Other banks dragged into the Treasury Secretary Tim Geithner and fed chief Ben Bernanke -- is well being called to Capitol Hill senate banking committee wants to know what they email.
About the whole situation meanwhile.
The the Fed federal reserve bank -- -- York.
May have known as early as August 07 member that was -- previous job that the the setting of interest rates global interest rates Libor.
Was fought and die following an inquiry with Barkley -- no wait.
It share proposals for reform of the system with British authorities so you have all that Michael Lafferty joins us now to decipher it is founder of the -- group in London.
And die it's on what this now Michael thank you very much.
For joining us and you wanna break up Barkley -- right which we could talk about what do with the other banks as well.
But what about the -- involvement quite possibly of the Federal Reserve in terms of knowing that at least known something was going on -- made about.
Hello hustlers it's theoretically possible -- actually nobody had I think we should really knows who knew.
We we have the deputy governor of the Bank of England yesterday saying -- -- the city of London is assessed as well.
Yeah a US financial institutions are are are major players in the -- -- in the in the city of London so if the city of London's assistance.
I think it's -- -- -- -- -- -- -- Well the Fed put out a statement today in terms of this and saying that in the context of our market monitoring following the crisis.
The Federal Reserve basically acknowledging that we received occasional anecdotal reports from Barclays over problems.
That -- being had with Libor the Scott Paul Tucker is Michael's referring to there.
In the testimony on the other side of the pond so to speak but in terms of what this leads to Michael down a lot of mention coming in the -- called for Barclays to be broken up into.
But if this indeed is bigger other banks are being drawn and as the we know already that there at least being questioned and all this and have been for years is a banking break up a big banking break up the end.
Game when this is all sorted out.
-- no I think I think kids that this isn't just about Fox -- this is about the abouts in universal banking as as as as we called the big banks today.
Banks that brought together investment banking on the one hand on what we used -- commercial banking on the other.
And I think this could be the turning points.
To this could be at the terms of bringing back something like Glass-Steagall -- -- it has some very breaking those banks up and into into two -- of lot of people think that so.
Sure so I could take the example of boxes -- is is trading it's shares are trading at 50% of book value.
If you look at -- you know the big universal banks of the world they're trading on price earnings ratios.
Which -- very very low indeed and you contrast that with focus to let's say consumer goods businesses like Unilever and Procter & Gamble.
They're trading at -- four times higher multiples right.
Our Michael Lafferty Lafferty group we'll get back to you and -- hopefully have you on again from London but thanks for -- today as.