The developing Libor scandal has ensnared Obama Treasury Secretary Timothy Geithner, the Washington Post reports.
While president of the Federal Reserve Bank of New York, Timothy F. Geithner pressed British regulators to reform the way a critical global benchmark called the London interbank offered rate, or Libor, is calculated, according to a June 1, 2008, e-mail obtained by The Washington Post.
Writing to the head of the Bank of England, among others, Geithner made six recommendations, which included eliminating incentives that could encourage banks to manipulate the rate and establishing a "credible reporting procedure."
"We would welcome a chance to discuss these and would be grateful if you would give us some sense of what changes are possible," Geithner wrote.
Geithner has been called to testify before the Senate Banking Committee to answer questions about his involvement in the scandal surrounding Libor, a rate used to calculate the cost of lending that governs more than $300 trillion in loans worldwide.