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FBN’s Charlie Gasparino on the NY Fed not alerting the Department of Justice when it learned of the manipulation of the Libor rate.
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Treasury Secretary Timothy Geithner that's what -- standing next to me explaining today how he handled.
That Libor rate manipulation at the house financial services committee hearing today because he heard about it several years ago.
Mister Geithner conceding she did not get the Justice Department specifically involved.
Here's a listen to the testimony.
So you did not report this conversation or any others like it to Justice Department.
That that's you did not did well I wanna be careful about this but in my colleagues at -- your credit going back over the -- records in this case I do not know.
What New York fed staff.
Did in terms of who else they informed about specific I don't know that what you did not know I -- I did not.
Charlie Gasparino standing next to to break this down you know I will bring this -- but I wouldn't give kudos to you wouldn't.
We we really killed CNBC yesterday.
On this whole bank -- remember -- looked right in the camera so this will be a huge story.
Seems the only today's get around to do in the huge story which appeared journeys Geithner hearings people talking about probably need to break up right thing we have Sheila -- the former head of the FDIC the question well exactly we asked her and she's very tough right now on the on the whole concept issue kind of waffled a total of what you really come out of -- but I -- -- here's a -- the bottom line is this.
As we said yesterday as the competition is reporting today.
This will be one of the big issues I believe after the election they are gonna have to talk about breaking these battles lot of it has to do with what happened right with like four.
But not just Libor but the -- will be yes Libor because this is a scandal that Geithner is involved in.
You know you gotta ask you know why didn't some of the big banks you know the heads of the big banks know about some of it is size but here's the other thing -- -- -- it was this is -- Geithner I think.
Really is -- basically has helped the defense attorneys of these traders who may or we may you know may get arrested in the coming days -- manipulate Libor.
He basically conceded that he saw that saw it his his staff went out alerted him that this was going on.
And he basically did nothing he did not refer this to the Justice Department he did not see it as a -- he called -- asthmatic and some of these memos.
On this report -- made recommendations to the British bank and I think about that.
You meet a recommendation.
When he saw what is now being described as fraud.
It will be used by defense attorneys every one of these guys who gets mailed they're gonna ask okay.
You know and -- you know what did you know what you were doing was wrong and they're gonna come back and several that we talked to the fat and -- -- stop which by the way they happened from.
If you look at those those depositions in some of those stick around for friendships.
They do not told to stop.
This is a big problem should point out that Geithner said he doesn't keep person did not so took to the Justice Department but he doesn't -- the staff did.
We've been calling to this -- a full day they still they basically say they can't answer that right now.
If you can't answer that now.
When you make -- up stuff because they know this -- question was coming for days and days and days they release their initial.
I guess transcripts and documents -- two weeks ago.
So it really looks like the fade gave the tacit approval the Fed is -- mean bank regulator.
To -- the US banks and he Barclays Barclays Capital assuming his -- is also regulated by the -- notes a subsidiary.
-- WWK bank gave its tacit approval that -- reading on Libor.
Is okay it's gonna I don't I -- okay indict these guys.
The problematical Tim Geithner as a witness.
Different about the traders the lowly traders who said help me out big boy.
The rate -- think about.
I -- defend it exactly -- the Justice Department their primary regulator it's like when you talk to the General Counsel of any company.
Can I do XY and Z and they say yes you basically have an affirmative defense.
They may have an affirmative defense using Tim Geithner.
In activity and inaction.
Mislabeling his eyes fraud as -- miss report.
They can clearly say it when it comes to intent -- criminal charges are based on the notion of intent.
Heidi good -- intent when the -- secretary of Williams issued the Fed president at that time treasury sector right now.
Didn't think was that big a deal and again this matters because a lot is based on that Libor rate everything from its private loans to sell mortgages and a August had not only act on it.
Tim Geithner as New York fed president was pricing bailout money bailout loans -- -- -- off Libor.
No wonder the retail investors too scared to get it why would anybody -- to -- and -- -- -- until that is he should be invested I don't I think you find good -- stock's dividend paying stocks.
Put your money in bonds it -- you -- definitely lose.
Right -- watch us you know what just doesn't give you we give you stuff a day before CNBC him.
And then maybe get -- stock -- part now although dot com or for diversification -- combest Charlie I I knew you know.
Thank you very much I don't -- stopper -- -- so people kind of.
Analyst Charlie breaks.
One reason that graphic again we've made that -- our graphics department put all the sweat and equity until probably 235 seconds we've got to do it.
