Sen. Chuck Grassley of Iowa today made the following comment on the settlement with UBS bank and regulators over manipulating a key interest rate, the London Interbank Overnight Rate, or LIBOR. Grassley and Sen. Mark Kirk have pressed for information on Treasury Secretary Timothy Geithner's actions when he became aware of the manipulation. The interest rate affects mortgages, student loans, credit cards and other loans.
Grassley comment --
"The fine might be large by the standards of these cases. But this is shutting the barn door after the horse has left. The courts still will be clogged with lawsuits over the trillions of dollars in investments tied to this manipulated rate. The scandal went on for years. Congress and U.S. regulators have to determine what steps could have prevented this mess and what to do in the future. We know the Treasury Secretary had the chance to do more as New York Federal Reserve president in 2008. He chose not to. Congress needs to find out why."