i have to say the federal reserve bank of new york is still investigating the situation itself. i do not know what communications or conversations were had with the three u.s. banks on the panel, but the enforcement actions were taken by cftc, and sec. >> do we know definitively that no u.s. banks were guilty of the same manipulation? >> we do not know that. >> that goes back to my concern. if we do not know that, it seems as if somebody dropped the ball that we are four years later and we do not know that. >> two banks have reported that they have been asked to disclose information to the ins to that -- investigative agencies, so the robust processes under way. >> four years later. my point is knowledge of this happened in 2008 and neither the new york federal other regulators gave a significant investigation so we could no one way or the other as we speak today four years later that the u.s. banks did not do the same thing. am i missing something? >> only again, i think the responsibility of the new york fed was to make sure the appropriate authorities had the information, whic

role, the federal reserve bank of new york takes the lead in gathering market intelligence for the federal reserve system. it was in the process of gathering market intelligence when it received information about libor's submissions, notably phone call on april 11, 2008, in which a trader in barclay's new york told an employee of the federal reserve that he thought that barclay was underreporting its rate. about that same time, stories began to appear in the media as well. there was an april 16 story in "the wall street journal" and "financial times" also had a number of stories. i'd like to make two preliminary points before talking about the federal reserve's response to that information. first, the information the fed received was about the bank's possibly submitting low rates in order to appear -- to avoid appearing weak during the period of the crisis. the transcripts of the phone calls that were released have no reference to the manipulation of rates for profit by derivatives traders as alleged by the recent decision. the second point i'd like to m

rebel cole has worked at the federal reserve monitoring banks. he's now a finance professor at depaul university. he joins us from chicago. >> does the federal reserve here in the states have a role regulating libor? >> i don't real have a role of regulating libor, but the banks involved, and as many as 15 additional banks may be involved in the libor scandal, including the largest u.s. bank, j.p. morgan chase. >> the u.s. federal reserve acknowledged it heard anecdoteal evidence and suggested reforms from regulators in the uk. is it appropriate for the federal reserve to essentially pass the buck to the british colleagues? >> they can pass the buck to the british colleagues, but they're responsible for regulating the u.s. banks. we don't know for certain u.s. banks were complicit. but it's a team sport. one bank can't manipulate. 16 banks were involved. >> tom: you have to know how libor is put together. it's a dalele survey of banks themselves and how much their borrowing costs are, and it's reported by the banks themselves in london. so the fed

to do to be aghast at how corrupt as global system has become we know what happens at the federal reserve bank in washington it's happening with mervyn king and bank of england in the u.k. they're colluding with bob diamond to rig markets on a three hundred trillion plus a market so this is beyond just mere signaling of the books this is a wholesale pearl harbor attack on the financial system the ultra violent now i bring up tony blair because he's also in the news for blair defends p.s. i as n.h.s. trusts face bankruptcy now noticed that anywhere a banker is running things where ever system they touch turns to bankruptcy tony blair has defended the spread of private finance initiatives under labor a seven n.h.s. trust face administration as they struggle to repay large debts from p.f. ideals so the scheme saw private firms building hospitals leaving the n.h.s. with basically a mortgage and an annual fee to pay over thirty years the total value of the n.h.s. buildings built by labor under the scheme is eleven point four billion but the bill basically max comes down to seventy billion tonnes i

bank to keep reserves with them. this was a powerful incentive to keep their land or have the bank put money into the market. you worked closely with the federal reserve. do you think a policy like that would be beneficial if it was implemented here? would it help the economy? >> i will not comment on the authority the fed has or how to use it. i will tell you my general view. economy is not growing fast enough. unemployment is very high. the huge amount of damage left in the housing market. americans are living with scars of a crisis. the institutions with authority should be doing everything they can to try to make economic growth stronger. that is an obligation we all share. congress has the authority for the most powerful tools we have available to help economic growth. we would like congress to use those in these contacts. we will keep supporting anything sensible that will make growth stronger and help get more people back to work and help make credit more available to people. two major businesses can expand to meet growing demand for their products. we have made a lot of progress. lending by small-business is growing. it is shrinking in

role, and the federal reserve bank of new york takes of the federal reserve system./ it was in the process when it received information about libor submissions, notably a phone call on april level of 2008 in which a trader in barclays told an employee of the federal reserve that he thought that barclays was underreporting its rate. about that same time, stories began to appear in the media. there was an april 16 story. i would like to make two preliminary points before talking about their response to that information. the information the fed received was about the banks possibly submitting lower ranks and ordered to appear less week. the transcripts of the phone calls have no reference to the manipulation of rates for profit by derivatives traders as alleged by the recent decision. the second point i would like to make is that this issue was complicated during the crisis by the fact that there were very few transactions than occurring overnight. banks are asked to report what they would pay their borrowing at a certain term. it may have been that transactions

the second step that the federal reserve bank took was to develop recommendations to address structural problems with libor that i mentioned before. the new york fed released a memorandum list of suggested changes that they submitted to the bank of england on june 1 and following earlier discussions with the bank of england. there are also communications with the british bankers' association which is a private group that constructs libor prior to june 1. the federal reserve bank of new york took the lead. they released information. they are looking for additional information. we were in supporting mode. we provided reports related to the construction of libor. our staff were in contact with the cftc. i think it is important to note that following the federal reserve bank of new york's disclosures to the appropriate authority that there was a rapid follow up. the cftc was making increase as early as april 2008. it sent requests to banks. they initiated inquiry in 2009. the european commission and a range of regulators are also investigating. we know about the june 27 settlement with barc

role, the federal reserve bank of new york takes the lead in gathering market intelligence for the federal reserve system. it was in the process of gathering market intelligence when it received information about libor's submissions, notably phone call on april 11, 2008, in which a trader in barclay's new york told an employee of the federal reserve that he thought that barclay was underreporting its rate. about that same time, stories began to appear in the media as well. there was an april 16 story in "the wall street journal" and "financial times" also had a number of stories. i'd like to make two preliminary points before talking about the federal reserve's response to that information. first, the information the fed received was about the bank's possibly submitting low rates in order to appear -- to avoid appearing weak during the period of the crisis. the transcripts of the phone calls that were released have no reference to the manipulation of rates for profit by derivatives traders as alleged by the recent decision. the second point i'd like to m

bank paper currencies of today. it is the primary cause of today's currency wars and of systemic inflation and deflation. indeed, the federal reserve system, america's central bank is the headwaters of the floodtide of subsidies to the cartelized banking system and social inequality it has created. now, in an imperfect world, people by imperfect human beings there can be no perfect monetary system. nor is the case for gold the case for investment in gold. on the contrary. based on a prudent consideration of monetary history, the case for the gold standard is an argument from tested principle, the purpose being to establish optimum monetary standard for a stable growing, equitable international economic and social order. by the test of centuries, the gold standard, the true gold standard, without reserve currencies is the least imperfect monetary system of history. thank you, and over to mr. grant. >> well, just as lew said, we humans are not very good with money and especially not very good with paper money. for 41 years and counting, the dollar has been a piece of paper of no intrinsic value and over these 41 years our banks have

hes rvie brt teonat federal reserve bank of new york, the bank of england, there were multiple, many-ye decisis initiated by people at barclays, and in t context of the finaial isistherwa xpine ee ctt le ne rtri bark is ways that there was an issue around these issues and if i can say this in thecontext of the nal is, there a se ihel et navenufs t r t fctat righ b rpng there is a report from the federal reserve bank of new york that looked at libor duringhe fun it's a crisis and said that ave asoihierat peoleborow a e eeyeosg d e xe ate ericas. let me just finish. we ca't sit he and say no when they there was an issue around libor. we cannot do it. "talreou"a surpse. ieeo ted rvnof ydi y rtn tie sida iiedith the various regulators to bring these issues to their attention. obviously, there were some issues. [inaudible] si'otinm oyols e viasa. whl, weren't they? >> chairman that is very difficult to say yes to that question but where we disappoied with multip en aule trllewe-e. he isouer d hohaeeal with. >> mr. diand, you said the asetraders were not acting on beha of tba ng taroat yer ac

those powers are given to the federal reserve as a whole and the reserve banks like the federal reserve bank of new york do play an active role in enforcement cases working with the board of governors when they implicate our direct authorities. >> thank you, mr. chairman. >> senator reed. >> mr. secretary, when you reported to the presidential working group including secretary paulson and chairman bernanke and chairman cox and i think chairman luken, did they direct you to do anything? did they indicate that they would do anything? essentially what was the reaction? >> no, but as you now know the cftc did roughly at the same time i think in response to the similar concerns we had did begin this investigation ultimately involving other parties and again it took quite a bit of time. these typically do. these are complicated things. you had the cftc and ultimately a variety of other regulator enforcement authorities undertaking a very far reaching investigation resulting in very tough enforcement actions. >> one of the things i think this illustrates again is the rather ambiguous position

. >> there was a substantial response by the federal reserve bank of new york, both in terms of informinge appropriate authorities that information led to investigations. the federal reserve bank of new york also contributed substantially to thinking about how to better structure the libor panel and the libor information collection to avoid the weaknesses in the system that became evident during the crisis. >> that was not enough for some senators. bernanke was pressed as to when he learned of the libor scandal saying it was 2008. but pat toomy and others wanted to know why the fed didn't follow up? bernanke said he referred to other regulators but couldn't say if two u.s. banks also involved were fixing the rate. he later grade misreporting the rate could be potentially criminal and calling the rate structural flawed and said it's time to think about a market rate for setting these other loan rates out there. >> steve, thank you so much. let's zero in on the rate rigging probe in washington. on monday, july 9th, the house financial services committee sent a letter to the federal reserve

topic a for investors and now a truly unbelievable report from the fed, this is the new york federal reserve bank lower without fed pump priming. oh, my god. also today federal reserve bank of san francisco president john williams said the economy has lost momentum. all right. my special guest last evening was former fed chair alan greenspan. he made headlines here opposing stimulus saying it hasn't worked up till now and it may not work in the future. >> i've stayed away from commenting on fed policy. i will say this, however, that the data do show that the expansion of assets has had very little impact on the economy for an important reason, that we've created a major increase in the asset side of the federal balance sheet and a very large trillion and a half increase in excess reserves but there is no evidence that any of those reserves, which were essentially deposits at the 12 central reserve -- 12 reserve banks by depository institutions, namely commercial banks. and they're not relending it. unless and until those reserves get into the marketplace it, has no effect. can you collapse the wh

bank said. or fix to use the proper word so the federal reserve the european central bank the swiss national bank all the rest are the business of imposing their judgement on the marketplace so they do this many ways most visibly they they set a money market interest rate that goes in this country by the name of the federal funds rate and that rate happens to be zero zero zero s. before tax mind you so the savers get zero before tax the speculators get to borrow at zero with which to finance their speculations so one can make. a good many arguments against the nebulae sion of rates and i have but the library scandal it seems to me is is this as a scandal is almost infinitely insignificant the significant scandal is there is the ongoing manipulation of rates by our central banks why do you think more people are making that connection hey of course so upset about live our lives why aren't we more upset about central bank manipulation of rates as a reality i think that i think there is a ritual loathing of of big money and big financial institutions that is certainly understandable not entirely misp

so, the federal reserve bank of new york took the lead here. a good bit of information. they are looking for additional information. they will release it if they find it. on the board side, we were in supporting mode. we provided analytic support, notably about the issues related to the construction of libor. our staff were in contact with the cftc in april and may to provide analytical support and governor crossner on the board at that time was in contact with the british authorities and the bba during may and june. i think it's important to note that following the federal reserve bank of new york's disclosures to the appropriate authorities, that there was rapid follow up. the cftc was making inquiries as early as april 2008. it sent requests for information to u.s. banks in the fall of 2008. the s.e.c. initiated inquiry in 2009 and the doj in 2010. currently, the european commission and range of other regulators, including british regulators, are also investigating and we know about the june 27th settlement with barcla barclays. so there was

that central banks around the world will act or print i want to say some believe gold of course is a hedge against major inflation i asked our guest john rogers about the federal reserve's latest claims about inflation take a listen talking about inflation the president of the federal reserve bank of san francisco john williams said on monday that those who have forecast that the fed's tripling of the bonnet terry base for the past four years would cause inflation have been dead wrong here's what he said he said despite these dire predictions inflation in the us has been the dog that didn't bark in a world where the fed pays interest on bank reserves traditional theories that tell of a mechanical link between reserves money supply and ultimately inflation are no longer valid what is your take on this because it seems that just by all this printing we haven't seen the inflation you may expect but what have central banks done if they've been successful and simply inflating their own balance sheets but not the broader economy what do you think. mysis i would suggest mr williams go shall we. go with his brother to go shopping or his wife or whoever goes shopping his family

. >> does the federal reserve bank of new york have the authority to oversee misconduct by banks that would be under your jurisdiction? >> the congress has given the federal reserve in this case the board of governors a range of different enforcement powers. those powers are given to the federal reserve as a whole and the reserve banks like the federal reserve bank of new york do play an active role in enforcement cases working with the board of governors when they implicate our direct authorities. >> thank you, mr. chairman. >> senator reed. >> mr. secretary, when you reported to the presidential working group including secretary paulson and chairman bernanke and chairman cox and i think chairman luken, did they direct you to do anything? did they indicate that they would do anything? essentially what was the reaction? >> no, but as you now know the cftc did roughly at the same time i think in response to the similar concerns we had did begin this investigation ultimately involving other parties and again it took quite a bit of time. these typically do. these are complicated things.

and also quantitative easing which you're clearly considering our own federal reserve bank of new york estimates that about 50% of the value of s and p over the last decade is related to fed action. and the buildup around fed action of quantitative easing. and my concern now is that what we're seeing is not an increase in the value of stock. but a projection in the loss of value of our dollar. and while we talk about that no inflation, i think what we're talking about is no visible inflation at this time because clearly if we're printeding more money to buy more of our national debt -- and i think you'll agree the federal reserve through intermediaries has bought over half of our debt the last coup of of years -- we have delude diluting the value of our dollar over time. and while it may not show up today or tomorrow, it's inevitable that i will will show up. and i think we see that in the reflection of the price of stocks because it's obvious that that doesn't reflect long term projections of value and profits as much as it does playing the market and what is coming out of the federal

part of that is finding out what parties within the federal reserve what parties within the banking community what they knew when they knew it what role they played in the past when they have that information and what role they are playing at present one name that comes to mind for me is the name turbo tax timothy guy he was sitting there at the new york federal reserve when the conversation as you just explained was brought to his attention he didn't appear to read act as if it was his job to be alarmed and concerned well he actually did pass pass along and i was not and i thought only an enabler you're going to be pleased with what i have to say i'm not defending tim geithner he did pass along to the bank of england that he had some concerns but then he went to the big new york banks and said what should be done they gave him a laundry list of things that should be done the big new york banks and he passed that list along to london so i mean this is this is. a business relationship it seems to me and it's in keeping with this oh i g a report that prostitutes of people are going out with fre

positions you shouldn't get to be the treasury secretary if on your watch as president of the federal reserve bank you able clearly guys are not the only villain here i mean i don't want to go how partisan is the only villain but he is not if you want to look at the larger picture andy. i mean i like what what did they know and when did they know it and i mean you've got to keep in mind i mean the the wall street journal described this as the mother of all scandals i mean library influences eight hundred trillion dollars in securities i mean this this is far more is far larger far bigger of a problem far more far reaching that these other scandals that we've had it touches me to see such as consumer the touch a student to to. just small business is pervasive it it's probably not the time to point fingers at who fell asleep at the wheel several years ago but to as quickly as possible the earliest possible to get to the bottom of how this thing happened there's going to be a lot of we're going to pick this up here i hear absolutely perfect last word for us after the break the n.r.a. doesn't want any

economy is weak and the federal reserve is ready to take action to change that. but speaking to the senate banking committee, the fed chairman didn't give any clues on when policymakers would do something. darren gersh reports. >> reporter: here's ben bernanke's take on the economy: progress on unemployment-- frustratingly slow. consumer spending, business investment and manufacturing-- all slowing. but the slowdown isn't deep enough yet to convince the fed to apply more monetary medicine. >> we haven't really come to a specific choice at this point, but we are looking for ways to address the weakness in the economy should more action be needed to promote a sustained recovery in the labor market. >> reporter: but the fed is clearly ready to do more. inflation is low, up just 1.7% over the last 12 months. that's drifting to the bottom of the fed's comfort zone. >> there is a modest risk, not a large risk, but a modest risk of going in the other direction which is towards deflationary side. >> reporter: asked about the bank interest-rate fixing scandal, bernanke said the fed told british bankers bac

banks. and en a board, public interest served by a board in washington, d.c., today the thstomo itss,to oee operation. well, in the early days, the individual federal reserve district banks weren't looking to the board to harmonize their interests. they could act somewhat aumo, there v ba within the fed to bring more power from the federal reserve district banks to the board in d.c. but that's a different sty, later story. a lot of th ima, of se, ldy sts heed rve from alan met el to many others. so the federal reserve is a relatively new institution, and the reserve district banks are finding their y. foosn. yk oin it's got more power because of where it's located. that counter to what the framers of the federal reserve act were hoping for, but reality being webao edison. now, edison starts studying this complex kind of layering it, looking at it, realizing it's very comely candidate. and -- mplid. unrstag tet picppor m ane' oiob to cast gold out. he thinks gold and gold-backed money is a mistake, but he also realizes you've got all of the business and all of the international business community running old. yocan' sthath w y,ging you know? we're going to

role, the federal reserve bank of new york takeshe the lead in gathering marketle, intelligence for the federal reserve system. it was in the process of gatt gathering market intelligence when it received information in which a trader in barclays new york told an employee of theclay federal reserve that he thought that barclay was underreporting its rate. about that same time, stories began to appear in the media. there was an april 16 story. i would like to make two preliminary points before talking about their response to that information. the information the fed received was about the banks possibly cementing lower ranks in order to appear -- submitting lower ranks and ordered to appear less week. the transcripts of the phone calls have no reference to the manipulation of rates for profit by derivatives traders as alleged by the recent decision. the second point i would like to make is that this issue was complicated during the crisis by the fact that there were very few transactions than occurring overnight. banks are asked to report what they would pay their b

bank lending facility and it's removing sovereignty from the underlying countries over at the federal reserve bank we find that there is a great appetite to do currency swaps with european banks and there's a tremendous communication going on there in the bank of england we find out that they're in bed with barclays bank an interest rate manipulation so correct me if i'm wrong but if we had into as a mixed up in this global centralization of money fractional reserve may have the european union the united states and the u.k. deciding that they create a new lending facility give it a new acronym that they restrict your ties all those debt yet again they give it near zero percent interest rate and a saw going to be managed once again more centralized as we head toward as you point out some kind of global currency global said global reserve bank is that the next step that appears call it the bill the trials that are commission but i don't i mean there i don't think they can pull it up their act or not will gather at the rate they're growing so i mean i think it's. your do you know it is a clear demons

better health prudential insurance answered federal reserve bank of san francisco will be part of their hosted by the job journal tomorrow at the hotel wick ham on market street in san francisco. go to our web site and click on see it on tv. >>> bear cub disappeared in the night in los angeles area suburb this evening. you can see the cub perched in a tree. that is east of pasadena where this happened in brad bury. dog chased the cub up a tree earlier in the day and eventually climbed down and scampered through several back yard. officers hope it goes to the mount. they are also ready with tranquilizer gun. >> 50 shade of gray is going to become a movie. same team that produced social net work tapped to develop the film version of of thee wrought ick book. every producer was beat out for the gig. 50 shade of grade sold more than 10 million copies world wide. the trilogy set to become the fastest selling book series in history. snoom you captain buy this thing out at the stand. >> kansas city to get out of that. >> all star week kicked off with fan favorite home run derby and familiar

the british bankers' association did not adopt most of the suggestions that were made by the federal reserve bank of new york. >> reporter: bernanke added concerns about libor manipulation are lower now than during the financial crisis, but he expects libor will be replaced by other market interest rates if it is not overhauled soon. darren gersh, "n.b.r.," washington. >> reporter: i'm diane eastabrook. still ahead, farmers and legislators call for more accountability from the futures industry. "nightly business report" is brought to you by: captioning sponsored by wpbt >> susie: despite that gloomy outlook from fed chairman bernanke, the nation's homebuilders are feeling upbeat. the national association of homebuilders' confidence index posted its biggest monthly jump in nearly a decade. and that helped boost investor confidence on wall street. the dow rose almost 80 points, the nasdaq added 13, and s&p gained ten3,oints. it's a mistake for investors to be hoping for the fed to take more action on the economy. so says our next guest, josh feinman. he's chief economist at d.b. advisors. so, josh,

better health prudential insurance answered federal reserve bank of san francisco will be part of thejob fair hosted by the job journal tomorrow at the hotel wick ham on market street in san francisco. go to our web site and click on see it on tv. >>> bear cub disappeared in the night in los angeles area suburb this evening. you can see the cub perched in a tree. that is east of pasadena where this happened in brad bury. dog chased the cub up a tree earlier in the day and eventually climbed down and scampered through several back yard. officers hope it goes to the mount. they are also ready with tranquilizer gun. >> 50 shade of gray is going to become a movie. same team that produced social net work tapped to develop the film version of of thee wrought ick book. every producer was beat out for the gig. 50 shade of grade sold more than 10 million copies world wide. the trilogy set to become the fastest selling book series in history. snoom you captain buy this thing out at the stand. >> kansas city to get out of that. >> all star week kicked off with fan favorite home run derby and fam

i have work experience with the federal reserve bank of san francisco. i am most proud of the work i have done for myself. i started a business called power forward, a social media and public policy consulting firm. >> why did you choose to return and live in san francisco? what motivated you to run? >> what motivated me was my love of san francisco. i see the changes that are happening. i see people picking cans out of the garbage. i see that there is no neighborhood grocery store. i see that small businesses are coming and going. they have not been able to sustain themselves. from my work experience in working for the city come in the mayor's office and in the nonprofit, i had a good sense of what the challenges were. as i looked on the horizon, i see more challenges coming. i thought i had a set of experiences and a passion and desire to serve. it started at 1 point when i was 8 years old. i took a tour here with my third grade class of city hall. coming into the rotunda, seeing the staircase, it is very mesmerizing, very memorable, and powerful. it w