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House Panel Starts Reviewing Fed Documents on Libor

A U.S. House subcommittee received more than 5,000 pages of documents it requested on the Federal Reserve Bank of New York’s communications on how the London interbank offered rate was set.

The 5,000 to 6,000 pages include internal New York Fed communications, and communications between the regional Fed bank and other U.S. regulators, as well as with foreign government agencies in the United Kingdom, Jeff Emerson, a spokesman for the House Financial Services Committee, said in an e-mail today. Staff of the committee’s oversight and investigations subcommittee has started to review the documents, Emerson said.

U.S. Representative Randy Neugebauer in July asked the New York Fed release communications on Libor rate submissions from August 2007 onwards. The U.S. central bank has been under scrutiny from lawmakers after the New York Fed released documents on July 13 showing it was aware that Barclays Plc underreported Libor rates in 2008.

In a letter sent July 23 to William C. Dudley, president of the New York Fed, Neugebauer, a Texas Republican, said there are still “outstanding questions that merit further investigation.”

The documents show “that the New York Fed helped to identify the problem of under-reporting of Libor, briefed U.S. Treasury and other regulatory agencies on the issue and worked to address the problem at its core by pressing for reform of the flawed Libor rate-setting process in London,” Krishna Guha, a New York Fed spokesman, said in an e-mailed statement.

To contact the reporters on this story: Ian Katz in Washington at ikatz2@bloomberg.net; Caroline Salas Gage in New York at csalas1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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