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Much so senator Grassley demanding that Treasury Secretary Tim Geithner come clean about what he knew -- the live horse scandal and calling on regulators to create a new American based index.
To replace the scandal -- London Interbank offering rate.
Charlie Gasparino has exclusive details on that this Charlie.
-- -- -- that what it did you watch the interview they giving you -- covering Bear Stearns and all this went down right people there are obviously despise me because they actually blamed for -- on that take them out at Bear Stearns yes we won't get into that way.
I will say this I find that -- you very fascinating because.
I mean this we should point out who Eric -- -- -- maybe the most partisan liberals.
In America right now holding public office we should point out that.
Okay if Bear Stearns is this the -- of losses Bear Stearns is supposed to know that the housing market the crisis was coming right Wieting Barney Frank.
Why didn't Chris Dodd.
-- men and by the way why didn't Fannie and Freddie know it was coming before it hit which they also screwed over investors so.
There's a lot of 20/20 hindsight -- this this looks completely political to me take its time for the election.
And I -- incredibly well and I think everyone is saying and you an -- you and -- gonna talk later tonight I mean -- should talk about this yeah okay but now let's get to my story right now that the there is it inches in thing going on right now with a Libor investigation -- the alleged manipulation of the London Interbank offered rate during the financial crisis.
Lots of investigations into this going on.
Looking at Barclays and other big banks including JPMorgan Chase which you point out that senator Charles Grassley is now launching his own investigation now.
He's a minority member of the of the -- investigative committee.
I will say this about Grassley he does good investigations he's launching with another gentleman mark Mark Kirk.
He's a guy that's been on Steve Cohen -- SEC capital he's done lots of -- insider trading this guy is serious.
And he's going after Geithner right now essentially demanding what he knew back in 20072 -- eight.
When Geithner was New York Fed Chairman and clearly was briefed and did an investigation.
On alleged manipulation of Libor so that's what he's doing he's demanding -- Geithner come clean.
Tell us exactly which -- tell us about did you even think.
Of the consequences of manipulating -- for example.
Cities and states -- -- -- because cities and states are involved in complex financial arrangements where if he's manipulate the break down it still hurts them.
Did he ever think about that that -- everything about the consequences that's all mapped out on this letter this letter is appearing on the on Fox Business Network dot com.
We should also point out one of the fascinating things about what he's seen in this letter is that he's essentially calling for for Tim Geithner the -- sector.
Or is a few months in the -- is gonna leave in the second if if Obama wins against the lead in the second prison Obama term.
He's calling him to create a new interest rate an American based interest -- term possibly to replace.
Libor since Libor now as you know there's not a lot of credibility.
Why is that -- credible because it was a manipulate how was it manipulated but rely wars and set by some computer I was so it was a bunch of banks basically send in.
The -- what they say Libor should be.
And they do of sort of -- average of those things.
It's so easily manipulated as you know -- -- now is -- we should pay zero for -- borrowing costs you know that's what and essentially that's what was happening -- -- finance course we know is happening.
I Tim Geithner was in the middle of it okay two stories here.
They want an.
And -- -- -- it did he look at the consequences.
When the federal have a right back before -- collection right.
I'm gonna say that has this story got quiet for a little -- about the sense that it was gonna and they weren't trying out -- down and looks like you know he -- to bring it back I you know this and this is a great story because it clearly was manipulated we're clearly Tim Geithner has New York fed.
President not the chairman he's the president and that's a big world member New York fed president is that.
Crying regulator of the big money center New York banks to be important banks.
He basically did nothing he heard about is it okay I'll talk to the guy in England about it maybe didn't -- just let ago.
That's one thing where us is looking at the other thing is could be an interesting story and of itself he's calling on -- okay forget about libel lets -- be ditch it.
Let's create our own index -- as you know -- was important credit cards lot of housing mortgages are priced off Libor the big thing.
It's a problem if you have to get rid of it he's thinking that an American based system where you know bunch of English banks and into gold banks on submit their Libor.
That would they think Libor should be -- the average it should be the way to do it air I would say you know this is a time you know I'm I'm you know I'm as a big defender of the -- for the stock exchange.
Computers work better its -- it's.
Records -- electronic -- -- -- I I think there's a computerized.
Way to do writes it's pretty spread Arctic air on Fox Business we've come up with a solution very got to try desperate up thanks so my.
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