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-- very much that we -- the growing question speaks out about the Barclays interest rates scandal prompting the Federal Reserve now.
To release documents on what the New York fed -- and what they did about it we expect that tomorrow and with us now it's terrible Driscoll former vice president of the Dallas.
Fed and Tim Geithner was the head of the -- Federal Reserve the timing question so what are we wanna know.
Well we want to know what they were told.
And what they did about it.
And of course we await the documents tomorrow and it would be speculation to think about what substantively is in them.
But it it appears based on what they've said already that they wrote a memo.
And that is the action they took -- for most people memo is not an action.
What should they have done -- in that case because you're right it would be speculation to talk about what might be in -- Particular documents but you have some informed speculation about what really happened if -- read for example the CFT set C settlement.
In the in the Barclays case and then just -- expand upon that -- -- banks and what have you but what should the New York fed have done do you think.
Well you had to Barkley case do you have do you admissions -- UBS right so it appears that some kind of fraud was being perpetrated.
And one would think that -- New York fed.
Would be concerned with fraud especially in such an important.
The price war interest rate this -- Libor rate.
And it's not that they were powerless to act because any number.
All of the banks that were involved in setting Libor right world's -- primary dealers of the Fed such as park police in UBS.
We ask you a little bit job just to get off of the subject just slightly.
Are more broadly about the the scandal that involves Barclays analogy say far more banks and is growing it seems by the day.
What the effect is on regular people because we've had some debate about that some people of months said.
Boy this is huge could be the biggest securities fraud in history distorts all said and done -- interest rates for mortgages and car loans and everything else.
And others have argued that -- what what are we so worked up about because if they're pushing rates down as was accused during the crisis.
Well -- maybe people were actually benefiting from that are not getting -- the word you come down.
Well -- first of all we don't know enough facts and and it appears that at least in some interest.
Include instances they pushed rates up up -- any case they were distorted one of the most important prices.
In the end in the financial markets system.
And if NFA private actors can distort these prices.
It raises real concerns about.
How we engage in transactions and their other.
All other things that are affected by.
Manipulating Libor such as the head and other spreads over right war.
So it really messes up calculations.
There was in the capital markets and that's what is capitalism but capital markets.
And I'll bet you're absolutely right about -- two things that could be very big and that we don't know enough yet but there was there was some reporting yesterday that the interest rate swaps.
-- involved in this -- say well what what what effect without -- Some governments may have been betting that Libor or may have been hurt if this rate went down in other words.
Lower interest rates don't benefit everybody saw government went may have wanted to take out.
Or may have had some money out there have been build something new in the community or whatever the case may be and they may invested may have invest in these interest rate swaps.
So then regular people I guess would have gotten hurt if the rate actually went down.
This of course for every swap whom were generally every derivative.
Normally one person is harmed while another person benefits right so I -- there's harm all over the place.
Terrible stress goes a former vice president with a Dallas fed and you think this is gonna go on forever arrived this things are gonna get resolved for.
Its got long legs death could go on maybe for years so mr.
Driscoll thank you very much.
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