Congress widened its inquiry into the interest-rate manipulation scandal, pressing the Federal Reserve Bank of New York to further disclose its knowledge of the multiyear scheme, the New York Times' DealBook Blog reported today. The oversight panel of the House Financial Services Committee yesterday sent a letter to the New York Fed seeking volumes of records about the London interbank offer rate (Libor), a measure of how much banks charge each other for loans. Lawmakers are demanding that the New York Fed detail its communications with employees from all 16 banks that help set the interest rate, which affects the trillions of dollars in mortgages and other loans. The letter follows an Congressional request that the New York Fed turn over transcripts from phone calls its officials had with just one bank: Barclays. In June, the British bank became the first to settle accusations that it tried to manipulate Libor for its own benefit. Authorities around the globe are investigating more than 10 other big banks for their role in rigging the interest rate.
