By Aruna Viswanatha and Sarah N. Lynch
WASHINGTON, July 23 A U.S. House panel on Monday
asked the New York Federal Reserve for a second round of
documents as part of an investigation into possible manipulation
by top banks of a benchmark interest rate known as Libor.
The House Financial Services Committee asked the Federal
Reserve Bank of New York for all communications going back to
August 2007 with the banks that help set Libor.
The committee is investigating how the New York Fed, which
oversees the banks, responded when it first learned about the
The New York Fed received the committee's letter and will
continue to try to publicly release any documents it turns over
to Congress to the extent possible, an official said.
The New York Fed has been pushed to release internal
documents amid a furor touched off last month after Barclays PLC
agreed to pay $453 million in fines for attempting to
Criminal and civil investigations into the issue by U.S. and
UK authorities are ongoing, and arrests of individuals could
come soon, sources told Reuters.
Earlier this month, the New York Fed released a slew of
documents to the House committee that showed Barclays had
alerted U.S. regulators as far back as 2007 to concerns that
banks were rigging benchmark interest rates.
Policymakers on both sides of the Atlantic did not appear to
take decisive action, underscoring the chaos of the financial
In its Monday letter to New York Fed President William
Dudley, the House panel sought to clarify what action the New
York Fed took after "admissions of market manipulation" by the
Libor contributing banks.
The committee asked the New York Fed to turn over the
documents by Sept. 1.
The House panel is also seeking the New York Fed's
communications with U.S. and British regulators, including the
Commodity Futures Trading Commission and the Financial Services