Bernanke Says Banks Underreporting Libor Very Troubling
By Caroline Salas Gage – Jul 17, 2012 4:47 PM ET
Chairman Ben S. Bernanke defended the Federal Reserve’s response to manipulation of theLondon interbank offered rate, saying the Fed cooperated with other regulators and suggested a fix.
“What you come away with is ‘Look, we turned it over to the responsible people in Europe – we did our job,’” said Robert Eisenbeis, chief monetary economist at Cumberland Advisors in Sarasota, Florida. While Fed officials “could have done more,” they are making it “pretty clear that this is the Brits’ problem.”
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