US Fed raised LIBOR concerns as early as 2007

The US Federal Reserve raised concerns about LIBOR as early as 2007 and shared proposals for reform with the UK regulator, according to reports.

Reuters reports that the Fed first noticed there was an issue with LIBOR setting in August 2007, and that it conducted enquiries with Barclays in 2008. A Federal Reserve statement read: "in the context of our market monitoring following the onset of the financial crisis in late 2007, involving thousands of calls and emails with market participants over a period of many months, we received occasional anecdotal reports from Barclays of problems with LIBOR. "In the spring of 2008, following the failure of Bear Stearns and shortly before the first media report on the subject, we made furt...