{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-c03aa079.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-517835be.css\" media=\"all\" /\u003e\n\u003cdiv data-title='Geithner testifies on actions regarding LIBOR' data-url='/boclips/videos/5c54bf6bd8eafeecae143026' data-video-url='/boclips/videos/5c54bf6bd8eafeecae143026' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\nGeithner testifies on actions regarding LIBOR\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003eRepublican lawmakers criticised US Treasury Secretary Timothy Geithner at a hearing of the House Financial Services Committee on Wednesday for failing to alert the US Congress four years ago that banks could be manipulating a key global...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003eRepublican lawmakers criticised US Treasury Secretary Timothy Geithner at a hearing of the House Financial Services Committee on Wednesday for failing to alert the US Congress four years ago that banks could be manipulating a key global interest rate.  \u003cbr/\u003eGeithner, who was then president of the Federal Reserve Bank of New York, defended his actions by saying that he immediately alerted US and British regulators in 2008, when he learned of problems with the London interbank offered rate, or LIBOR. \u003cbr/\u003eHe also said the problems were written about in the financial media.\u003cbr/\u003e\"I felt that we did the important and fully appropriate thing,\" Geithner testified.\u003cbr/\u003eBut Representative Scott Garrett, a Republican, asked why Geithner didn't tell the Congress.\u003cbr/\u003e\"You have appeared before this committee countless times since 2008. Why did you never mention it?\" Garrett said. \u003cbr/\u003eBritain's Barclays bank admitted last month that it had submitted false information to keep the interbank rate low. \u003cbr/\u003eThe bank was fined 453 (m) million US dollars in settlements with US and British regulators, and its chief executive Bob Diamond resigned.\u003cbr/\u003eDocuments show that the Federal Reserve learned in 2007 that Barclays was manipulating the rate.\u003cbr/\u003eOther major banks, including Citigroup Inc. and JPMorgan Chase \u0026amp;amp; Co., are under investigation for similar violations.\u003cbr/\u003eThe European Union proposed on Wednesday to make manipulating the LIBOR and other key global interest rates a crime.\u003cbr/\u003eA British banking trade group sets the LIBOR every morning, after international banks submit estimates of what it costs them to borrow money. \u003cbr/\u003eThe rate affects (tr) trillions of dollars in contracts around the world, including mortgages, bonds and consumer loans. \u003cbr/\u003eSome GOP lawmakers also asked Geithner why, as president of the New York Fed, he used a rate he knew in 2008 to be flawed as the basis for (b) billions of dollars in bailout loans to big financial companies in the crisis.\u003cbr/\u003eGeithner also warned in his testimony that Europe's debt crisis and a looming budget crisis in Washington could weaken an already-fragile US economy.\u003cbr/\u003eHe told the panel that regulators must pursue stricter oversight of the financial system to help stabilise the economy. \u003cbr/\u003e1. US Treasury Secretary Timothy Geithner walking to seat in front of House Financial Services Committee as photographers take pictures\u003cbr/\u003e2. Mid of congressmen\u003cbr/\u003e3. SOUNDBITE (English) Timothy Geithner, US Treasury Secretary:\u003cbr/\u003e\"We were aware of the risk that the way this was designed created not just the incentive for banks to under-report, but gave them the opportunity to under-report and that was a problem.\"\u003cbr/\u003e4. SOUNDBITE (English) Spencer Bachus, Chairman, House Financial Services Committee:\u003cbr/\u003e\"You were aware that they (the Bank of England governors) took no action, I believe?\"\u003cbr/\u003e5. SOUNDBITE (English) Timothy Geithner, US Treasury Secretary:\u003cbr/\u003e\"Our first instinct of course was not just to brief the broader US regulatory community including the enforcement agencies, but to bring this to the British, and I personally raised this with the Governor of the Bank of England and then I sent him a very detailed memorandum recommending a series of changes. And then...\"\u003cbr/\u003e6. SOUNDBITE (English) Spencer Bachus, Chairman, House Financial Services Committee:\u003cbr/\u003e\"Yeah. Well let me ask you.  Yeah, and he has denied having any.... any evidence of rigging or of misconduct. But according to what you supplied him that... that would... his testimony would not be correct, is that right?\"\u003cbr/\u003e7. SOUNDBITE (English) Timothy Geithner, US Treasury Secretary:\u003cbr/\u003e\"Well I... again I felt that we did the important and fully appropriate thing, which is to bring the attention not just to the people in Washington but to the British, not just the reports and the concerns that were broadly held on the market and the public domain, but also of the... the range of problems in the way his rate was designed that created that vulnerability. And so we gave.... we brought those concerns to their attention.\" \u003cbr/\u003e(Spencer Bachus, Chairman, House Financial Services Committee: (English) \"Sure.\") \u003cbr/\u003e\"And we felt, and I still believe this, that it was really going to be on them to take responsibility for fixing this.\"\u003cbr/\u003e8. Pan right of hearing, UPSOUND (English) Scott Garrett, Republican, New Jersey: \"I hear all of this, first on the LIBOR situation - you really can't have your cake and eat it too.  You have been before this Committee countless numbers of times since 2008.\" \u003cbr/\u003e9. SOUNDBITE (English) Scott Garrett, Republican - New Jersey: \u003cbr/\u003e\"You had the authority for four years to come to us, lay out the problem, lay out the solutions and for four years you didn't do anything about it. Will any regulator, from the top down, lose their job Mr. Secretary?\"\u003cbr/\u003e10. SOUNDBITE (English) Timothy Geithner, US Treasury Secretary:\u003cbr/\u003e\"In my judgement, the regulators did the necessary appropriate thing in this context and they started that process very early.\"\u003cbr/\u003e11. Back view of hearing, UPSOUND (English) Timothy Geithner, US Treasury Secretary: \"The ongoing European crisis presents the biggest risk to our economy.\"\u003cbr/\u003e12. SOUNDBITE (English) Timothy Geithner, US Treasury Secretary:\u003cbr/\u003e\"The economic recession in Europe is hurting economic growth around the world. And the ongoing stress in financial markets in Europe is causing a general tightening of financial conditions, exacerbating the slowdown in growth.\"\u003cbr/\u003e13. Mid of congressman\u003cbr/\u003e14. SOUNDBITE (English) Timothy Geithner, US Treasury Secretary:\u003cbr/\u003e\"In addition to the pressures from Europe, and the broader global economic slowdown, US growth has been hurt by the earlier rise in oil prices, the ongoing reduction in spending at all levels of government, and slow rates of growth in household income. The slowdown in U.S. growth could be exacerbated by concerns about the approaching tax increases in spending cuts, and by uncertainty about the shape of the reforms to tax policy and spending.\"\u003cbr/\u003e15. 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