TARP Watchdog Wants Fed, Treasury To Ditch Libor

Law360, New York (October 25, 2012, 4:58 PM EDT) -- A federal watchdog on Thursday urged the U.S. Department of the Treasury and the Federal Reserve to remove a tainted international interest rate benchmark from remaining financial crisis bailout programs, but the two agencies have so far rejected that call.

In a quarterly report to Congress, Christy Romero, the special inspector general for the Troubled Asset Relief Program, said keeping the London interbank offer rate, or Libor, as the benchmark for outstanding loans to financial institutions that received bailouts during the 2007-09 financial crisis put taxpayers...
To view the full article, register now.