treasury secretary timothy geithner comes to germany to talk about the european crisis. >> no ending to the fighting in of 0h. france calls for an urgent meeting of the u.n. security council. >> it trial begins in moscow. a fight between the president and an all-female punk band. >> well, it is usually a playground for germany's rich and famous, but today it was the scene of high end diplomacy in the eurozone debt crisis. >> the u.s. treasury secretary swept into the north sea island to see his german counterpart wolfgang scheuble who is on vacation there. >> the markets are hoping that a game-changer in the crisis could be on the way. that is after mario draghi promised last week to do all it takes to stabilize the euro. >> germany's finance minister cannot of charlie's get the debt crisis during his summer break. u.s. treasury secretary timothy geithner called on wolfgang short life ensued, to urge germany to work together with other eurozone states to resolve the crisis and boost confidence in the currency. that means coordinated action, but right now accusations are flying. the h

undetected for two decades he also called those regulators means there it will talk about it plus timothy geithner answered questions about his knowledge of why a bore and response to this. reason why bore i'm reluctant the coldest gambled on a cold eyed larboard. own just just a lie bore a laugh well when you're going in with that assumption it would seem to indicate a real hardball interview ahead we'll show you what did transpire let's get to today's capital account. so ben bernanke was back on the hill today in his second day of testimony before members of congress this was technically bernanke he's semi annual report to congress but the chairman's regular appearances before the sputtering organs of democracy have become a bit painful to watch because there have been many and they appear to be rather ceremonial at best the chairman certainly doesn't seem to want to be there and many of the congressmen it seems and women see it as a great way to perhaps get on the evening cable news with some kind of catchy soundbite that appeals to their constituents sense of outrage directed at wall street or

rates at zero percent an unnatural zero percent for years just now i mean back to you know what timothy geithner now u.s. treasury secretary knew and when he knew it i'm wondering if we can't give him a little credit back in two thousand and eight he e-mailed he got an e-mail and he suggested the british authorities should quote strengthen governments and establish a credible reporting procedure they should eliminate incentive to misreport. does going to thumbs up for trying to do something or with the fact that he knew this was going on and chose to ignore it through now. well i don't know i mean i different reports have been coming out and this is a fairly new story and i haven't i don't know to me god i don't know everything he was thinking or doing i met anybody can write an email anybody can can look like they're covering their bases and this is just speculation but come on what was really done what was really what actions were really taken that i don't really see anything that makes me really feel like you know timothy geithner as everyone's best interests at stake and not the interests of

employee reportedly did tell the new york fed that bank was under reporting live for excuse me timothy geithner was of course he's now u.s. treasury secretary he was then the head of the new york fed and it's come out that he did try and do some things they did regulators did try to discuss this but the question of course is always couldn't they have done more and was it too late but the real question i want to point out here this is become a huge outrage and it should be an outrage i believe in so far as these are banks that are manipulating the rate they're doing the wrong thing they're doing something corrupt and that is fair enough because they have done a lot that you can be very angry about but as far as manipulating interest rates the largest manipulators of interest rates are central banks all over the world who it is their job to manipulate interest rates so maybe some of this is a according to gets i spoke to jim grant who is amazing should be directed at the federal reserve who for example has been keeping interest rates at zero percent an unnatural zero percent for years just now i

that are outraged about this to make to make this the issue that it that it needs to be this timothy geithner should not be sitting in the seat that this that should have been such an embarrassment to the administration that they should have found someone else other than timothy geithner. to fill that seat it's . you know if you go back to and this is an issue also as relates to the republicans and if you go back to some of the founding documents of this country if you go back to fit the federalist papers in federalist number ten james madison was concerned about factions he was concerned about interest groups. that were going to have a greater personal interest in legislation than what was in the best interest of the american people and this is really what we're we're getting to the crux too so for those conservatives who want to be strict constructionists and read the constitution for this for this is an issue that they should be championing because this gets to the core of what james madison and many of the other founding fathers were really all about they were about public service they we

treasury secretary timothy geithner made an unexpected visit to his german counterpart while she was on holiday and issued this statement expressing confidence in the efforts to support the euro. here is our correspondent. >> a quiet hotel on the north sea island might seem like an unlikely venue for the meeting of two policymakers, but these are unusual times. u.s. treasury secretary timothy geithner, concerned about the euro zone crisis, sought a meeting with the german minister on his holiday. in a statement, they said there was a need for global cooperation to resolve debt problems. momentum is building, possibly to be unveiled at the european central bank on thursday. its chief promised last week to do whatever it takes to preserve the euro. investors took that to mean that ecb would help countries like spain by buying up their iou'e and government bonds. they purchased bonds for 2010, but that seems to be reluctant to do it anymore. a pledge to intervene, hoping that will persuade markets it means business, or it could expand, spending billions more to ease market pressures. >>

we begin with some tough questions today for treasury secretary timothy geithner about the bank interest rate-fixing scandal. in 2008, geithner was head of the new york federal reserve. he sounded an early warning with british and u.s. regulators about weaknesses in the bank-to- bank lending rate known as libor. it's a key global interest rate and one which traders and banks are accused of manipulating. darren gersh reports members of congress aren't convinced geithner did enough. >> reporter: back in the spring of 2008, geithner says he sent a detailed memo to the bank of england warning that it needed to reform the way british bankers came up with the libor rate. >> 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. >> reporter: but members of congress said the problem was deeper. >> if they were having structural problems, i thought your email was appropriate. but what was being disclosed here was fraud. >> reporter: geithner argues british bankers set

of us so this is their rationale but the space race has been replaced with the frog race so timothy geithner is lecturing the chinese in the meantime he's trying to commit fraud faster than they can commit fraud on him so here's sixteen percent of respondents so they would commit insider trading now let's look at something called outsider trading max labor department asks nuclear guardians for help keeping jobs data secret c m b c is learning that the department of labor has asked sandia national laboratories the organization that ensures the safety of the nation's nuclear weapons stockpile to scrutinize the security procedures surrounding the release of monthly jobs report data so they're free that you know not only are there insider trading happening from those inside the government they have access to this jobs report before it happens every first friday of the month well here they're saying that it's high frequency traders and people with super computers are slowing down various websites on government websites and order to keep other people other participants in the markets perhaps from

neel, the problem i have with the idea of smart spending is we don't see -- with all respect to timothy geithner, he's basically talking about president obama's policy which is geithner's job to defend the president, but they want to spend across the board. they want more infrastructure, more teachers, more state and local government spending. you're not going to tell me that's smart spending. >> of course not. for 30 years our economy borrowed and to beast consumption, boost gdp growth. that illusion is over. we need to transition away from borrowing to consume toward savings and investment. there is smart spending to be had. you know, repairing bridges and roads that are crumbling rather than high speed trains to nowhere. those are examples of smarter spending. >> hang on. we'll come right back to talk about today's triple digit rally turbo charged by tech stocks. maybe, maybe, maybe comments by fed head ben bernanke. and we take a look at geithner's philosophy as well. later on, the worst drought in decades damaging crops across the nation, likely to put u.s. and global food prices a lot high

you're supposed to start investigation this is criminal there's no other way to describe it timothy geithner is the biggest aider and abettor of criminal fraud in the world and this goes back a run. i have a very good book called confidence man it's the economic history of the first couple years the obama administration and it reports that geithner at the white house you know the speaker the white house staff and by extension the department of justice said you have to go easy on these bankers because the system is too fragile if we start taking people away in handcuffs you're going to cause a banking panic well maybe the system is fragile why don't the surly disagree with that but what does that say the secretary of the treasury is trying to cover up crimes or tell the justice department to go easy and what signal does that send to the wrongdoers it says hey you can break the law all you want the government's not going to go after you because you're too big to fail and so the too big to fail doctrine goes beyond finance it goes into criminality because the history in the united states going

your income taxes and here you go i mean to got yourself a tax evader i was just going to say timothy geithner is a tax evaders and if i was a tax evader i would not be sitting at this in this seat talking to you right now there is a double standard in this country and unfortunately there aren't enough middle class americans that are outraged about this. to make to make this the issue that it that it needs to be this timothy geitner should not be sitting in the seat that this statute have been such an embarrassment to the administration that they should have found someone else other than timothy geithner. to fill that seat it's a it's you know if you go back to and this is an issue also as a release of the republicans if you go back to some of the founding documents of this country if you go back to fit the federalist papers and federalist number ten james madison was concerned about factions he was concerned about interest groups that were going to have a greater personal interest in legislation than what was in the best interest of the american people and this is really what we're what we're

a day in the hot seat, for treasury secretary timothy geithner. lawmakers grilled him over an international interest rate rigging scandal. >> tom: i'm tom hudson. will the federal reserve soon have some new medicine for the struggling u.s. economy? we talk with former fed vice chair alan blinder. >> susie: and the nation's airlines look to raise ticket prices. bad news for passengers, but will it help profits? >> tom: that and more tonight on "n.b.r."! we begin with some tough questions today for treasury secretary timothy geithner about the bank interest rate-fixing scandal.

entire idea of a fiscal cliff totally overblown and it turns out the while the new york that timothy geithner did try to address live or problems back in two thousand and eight but the documents show that his recommendations basically came straight from the banks so grab your pain pills and some water so every monday hangover. you're going to. be. joining me to discuss this tonight is christian dorsey director of external and governmental government affairs at the economic policy institute and joining us remotely is james pullos producer at huff post live and i want to thank you both for joining me tonight and before we get into it let me just start with this clip right that everyone keeps playing today which is this new ad that's been put out attacking mitt romney take a look. i'm barack obama and i approve this message oh beautiful for spacious all right. all are for. to. go. all right so the way that everyone else has chosen to look at this and then address it is the typical partisan finger pointing and what not but let's go back to what i was just talking about which is the president's po

. >> timothy geithner met with his counter part this afternoon. they will discuss u.s. and european and global economies. silvia is in frankfurt with the latest. how will this meeting go? i wonder if mr. geithner will ask him if he backs fresh ecb moves, whether he'll give his cooperation? >> reporter: whether they throw sand at each other. they are not meeting in berlin because he is on holiday. timothy geithner has been to poland last year as we remember and received a little bit of a cold shoulder at the time saying come on we don't need nyad vice from you, we know we're in a deep cry s-we're trying to handle it, have a nice day. it quite won't go like that. what coordinated moves can they possibly put up there. there isn't an awful lot we can do in terms of international coordination. yes we can pump more money, what lines can be extended or expanded whatever it is. at the end of the day, however it will be left to temp cb to buy time until the germans not the least of all find out already their constitutional court even allows them to sign the treaty of the esm trea

we have an extraordinary spat developing between the governor of bank of england and timothy geithner. mervyn king said geithner had no evidence of misreporting although he said barclays was understating borrowing cost. nobody at new york fed gave us any evidence of wrongdoing. this is after paul tucker says he wasn't sure he addressed his mind to what geithner meant by deliberate misreporting of libor. let's listen into more of this developing discussion. >> whether it was at that meeting or a bilateral with mr. geithner i no longer remember but everyone had been concerned about the behavior of libor because this was something that, the particular concern was dollar/libor not so much sterling/libor, but dollar/libor. through the period of '07 and ultimately through october of '08 it was moving up and down a great deal. libor was like the temperature of a patient. it was how you measured the health of the system. so it was so volatile in moving up and down that everyone was thinking of ways in which they could introduce policies that would bring libor rates back down to where they nor

. >> eliot: earlier this week treasury secretary timothy geithner as well as democrats in it seem likener had done everything he could while at the new york fed to curb libor manipulation. but as we continue to find out that is not the case. in an op-ed in today's financial times a former invest investment banker says that libor manipulation was a poorly held secret over 20 years ago. and i quote. simply put then, it seems that the misreporting of the libor rates may have been common practice since at least 1991. even worse is the fact that the federal reserve was may aware of the possible manipulation of libor as far as back as 1998. one person who can make sense of all this, the always incisive and metaphorical contributing editor for rolling stone magazine, matt taibbi. this cesspool, this quick stand of a scandal keeps getting wider and filthier. >> we have a trader, who said this goes back to 1992. i spoke to a couple of people at wall street who said this was a poorly held secret dating back several years, every knew there was something wrong with libor back at the start of the o

and the key note speaker is timothy geithner. a number of the day's other headliners joining us on set throughout the morning. >>> first, the latest headlines on this wednesday morning. >> fed chairman ben bernanke will be back on capitol hill this morning, as part of a two-day of his semiannual humphrey hawkins address in front of the financial services committee. yesterday he stopped short of predicting more stimulus for the economy but he did warn of ri risks. >> we are looking very carefully at the economy. trying to judge weather the loss of momentum we've seen repeatedly is enduring. and whether or not the economy is likely to continue to make progress towards lower unemployment and more satisfactory labor market conditions. if those conditions -- if that does not occur, obviously, we have to consider additional steps. we've looked at a range of possible tools. mostly again involving the balance sheet and communication. >> in earnings central we also have a few names to watch this morning. bank of america, honeywell and bla

the first results of which you have seen. >> hours treasury secretary timothy geithner.r response? >> first of all, the bank of england says the memo he sent to the british actually did not outline any specific regulatory concerns and did not give him any information, but only proposed steps in the future. those steps were more recommendations for more self regulation for the banks. my question is, if the bank of england and the fed knew about this activity dating back to 2008, why was nothing done? why were there no criminal investigations until now? why did the rest of us not hear about this? this information to be pertinent to everyone who makes investments. it was kept secret. the information the fed got was some of the banks were not only manipulating libor, but doing it because they felt they had no choice because everybody else was doing it. for the fed to get that information and not immediately launched a massive criminal investigation or help the justice department do that, speaks to the ineffectiveness of the response. >> is a part of the problem that some of

strange day in court that raised more questions about the tragedy in aurora and treasury secretary timothy geithner tells us why he thinks tax cuts for the rich must expire at the end of the year. >> i'm erica hill. ncaa president is here to talk about the sanctions against penn state. >>> first, as we do every morning, we begin with a look at today's eye opener. your world in 90 seconds. >> the charges on which the court found probable cause is first-degree murder. >> the accused colorado gunman makes a bizarre court appearance. >> holmes appeared to be a mess. >> he did not speak and appeared dazed. the district attorney is not ruling out the death penalty. eight victims remain in critical condition. >> no price will repair the damage inflicted by jerry sandusky on his victims. >> i was, like, taken aback. >> joe paterno has been stripped of more than 100 of his football victories. he's no longer the winningest coach in college football history. >> syria hasn't ruled out using chemical weapons saying it would only deploy them against foreign intervention. >> they will be held accountable if they

. >> timothy geithner will testify before the committee.ou plan to ask him about that scandal? >> we need to learn what he knew and why for example after they wrote their memo and looks like they disposed of it, why they didn't follow up. people were confessing they were distorting the market looks like to me that was a big deal. if -- the question is if we don't have that kind of follow-up, what other things are going on that are market distorting that we're not taking care of. >> what's the solution here? what are you trying to get to in terms of proebz, is it a case for more regulation or an issue we need better regulators? >> you've heard me say a number of times, we don't need more regulations, the answer is washington, we need more money or need more regulation or need more regulators. what i've always said we need regulators doing their job. that's what the purpose is, to determine why people didn't do the right job and what should have been the appropriate response and why that response wasn't taken. >> we'll leave it there. good to

a day in the hot seat, for treasury secretary timothy geithner. grilled him over an international interest rate rigging scandal. >> tom: i'm tom hudson. will the federal reserve soon have some new medicine for the struggling u.s. economy? we talk with former fed vice chair alan blinder. >> susie: and the nation's airlines look to raise ticket prices. bad news for passengers, but will it help profits? >> tom: that and more tonight on "n.b.r."! we begin with some tough questions today for treasury secretary timothy geithner about the bank interest rate-fixing scandal.

fox business network got a copy of a 2008 memo from treasury secretary timothy geithner back when heederal reserve. t suggests regulators knew banks might have been providing misleading information about how they set interest rates. rates effect how we all plane on loans, mortgages, credit cards, student loans and more. james rosen is live in washington with details on us. thanks. >> john, good evening, these documents by the new york fed today show america's central bankers had early glimpses of the lending scandal surrounding the average interest rates that the banks in the u.k. charge each other. barclay has already paid out a half billion-dollar settlement and top officers there have resigned amid disclosures that the large british bank misreported data in order to fix the rate. other u.s. and uk banks are now under investigation. these new documents show that back in april of 2008, when treasury secretary timothy geithner was the new york fed president, investigators there interviewed critical witnesses, quote: the barclays employee explained that barclays was underreporting its

means committee chairman sander leventhal of by timothy geithner on the economy. later, an oversight hearing on the civil rights division of the justice department. >> joining us this week, rep sander levin, democrat from michigan. thank you for being here. and joining us to question him are gail russell chaddock, washington editor of "the christian science monitor" and david leitman from mcclatchy. >> there's a lot coming up this year. we have one week in session next week and then six or eight days in september. then elections. in the fiscal cliff. is congress really have enough time in those eight days plus next week to assure the country that all is well heading into these elections? >> indeed, i think the battle next week may give people some discouragement, though i would hope it might encourage people. we're going back about over one of the key issues related to the long term. that is whether revenues will be a part of the solution. the republicans are essentially saying that we cannot touch the income taxes of the very high income families. that is their p

plus treasury secretary timothy geithner's response that he bailed out main street and now wall street and more later on "cbs this morning." that's "cbs morning news" for for this tuesday. appreciate you watching. i'm terrell brown. take care. have a great day. -- captions by vitac -- www.vitac.com >>> president obama's said to leave the bay area today. the protesters who made sure their forces were heard >>> the man accused of opening fire at home sold-out theater >>> milder temperatures are on their way, we'll talk more about that coming up >>> i will tell you were my slow you down in just a few minutes >>> this tuesday july 24th. president roh obama is waking up once again in the bay area. the president makes stumps up the skies right center. and up the fox theater in oakland print this is the president's seventh visit to california. the president talked about how much money is opponent will

plus, fed chairman ben bernanke and treasury secretary timothy geithner will be in the hot seat as they testify on capitol hill on the barclay's rate-rigging scandal. and, we take an-depth look at the impact of immigration on the u.s. economy. >> tom: the major stock indices finish the week with some rong bung, boosd byanking stocks. helped by the better than volume was 679 million shares on the big board. just 1.36 billion on the nasdaq. today's gains helped improve the weekly performances for the major indices. the dow industrial average was essentially unchanged from a week ago. the nasdaq lost 1% this week. the s&p 500 is 0.2% higher tonight compared to last friday evenin thanks to the better tha expected earnings from j.p. morgan, banking stocks led the charge. the financial sector jumped 2.8%. industrials and materials just under 2% each. all ten major stock sectors were higher. j.p. morgan saw the big gains, up 6%. before the first disclosure of its big trading loss, j.p. morgan was trading close to $41. with today's rally, it's just over $36. other big banks got a boost. citi ra

. >>> treasury secretary timothy geithner was on the hot seat yesterday. he told the senate banking committee the federal bank waited four years to penalize barclays bank because it was complex. geithner was president of the new york set at that time. bark lays bank was fined $453 million for man incompetent lating the libor. that rate affects trillions of dollars, including mortgages and consumer loans. >>> if you couldn't tweet yesterday, you certainly weren't alone. twitter was down or just slow across much of the world for several hours. the company said the outage was caused by a double system failure. it was the second time in just over a month that twitter has gone down. >>> more problems for the ford escape. the company is recalling 485,000 of the popular suvs because the gas pedal can get stuck. the recall affect suvs made from 2001 to 2004 that have three liter v-6 engines with cruise control. it's caused at least one death, nine injuries and 13 crashes. just last week, ford recalled more than 20,000 2013 models of the escape. >>> and j.c. penney