U.S. Treasury Secretary Timothy Geithner, under pressure for not doing enough to stop fraudulent manipulation of a key benchmark interest rate, told lawmakers on Wednesday he alerted the appropriate authorities "early on."
Sanford Weill, the financial tycoon who pioneered the modern U.S. megabank that mixes deposit taking and ending with riskier investment banking activities, called for the model to be dissolved in an interview televised on Wednesday.
Hundreds of bailed-out banks are still struggling to repay taxpayers and will soon find it even harder to make required dividend payments to the U.S. Treasury, according to a report on Wednesday by the watchdog for the government bailout program.
A judge rejected a request on Monday for the former chairman of Spain's Bankia, Rodrigo Rato, to give evidence in a fraud case against him and other executives at the failed bank before he appears at a parliamentary inquiry on Thursday.
A group of banks being investigated in an interest-rate rigging scandal are looking to pursue a group settlement with regulators rather than face a Barclays-style backlash by going it alone, people familiar with the banks' thinking said.
Central bankers and regulators will hold talks in September on whether the troubled global Libor interest rate can be reformed or whether it is so damaged that the benchmark of borrowing costs should be scrapped.
The Federal Reserve Bank of New York will release on Friday documents showing it took "prompt action" four years ago to highlight problems with the benchmark interest rate known as Libor and to press for reform, an official at the regional U.S. central bank said on Wednesday.