Bank of England: Geithner offered LIBOR advice

July 13, 2012 - 11:14 AM
Barclays Congress Geithner

Treasury Secretary Timothy Geithner leaves a closed-door meeting with Senate Democrats on Capitol Hill in Washington, Tuesday, July 10, 2012. Senate Banking Committee Chairman Sen. Tim Johnson, D-S.D. is asking Geithner, as well as Federal Reserve Chairman Ben Bernanke, to be prepared to answer questions at a Congressional hearing later this month about allegations of global interest rate manipulation. (AP Photo/J. Scott Applewhite)

LONDON (AP) — Bank of England officials confirm U.S. Treasury Secretary Timothy Geithner contacted the bank in 2008 with concerns over the mechanism for setting a key borrowing rate.

The U.K.'s central bank Friday released an email from Geithner when he was President of the Federal Reserve Bank of New York. The May 27 2008 email contains Geithner's suggestions for ways to bolster the credibility of the London interbank offered rate (LIBOR) rate and make the rate-setting process more transparent.

Bank of England Governor Mervyn King responded on June 3, thanking Geithner and saying his recommendations seem suitable.

The LIBOR rate-setting process has come under scrutiny since Barclays bank admitted two weeks ago that it had submitted false information to keep the rate low. The bank agreed to pay a $453 million fine.