Federal Reserve

US

Ben Bernanke, chairman of the US Federal Reserve, branded LIBOR "structurally flawed" in his first remarks since Barclays was fined £290m for attempting to rig the inter-bank lending rate.

The governor of the Bank of England, Sir Mervyn King, has insisted he did not call for Bob Diamond's scalp before Barclays' former chief executive stepped down.

The US Treasury Secretary Tim Geithner warned Mervyn King and colleagues at the Bank of England about problems with the LIBOR rate in 2008, years before the scandal was revealed.

Some 80% of US stocks' excess returns since 1994 have been earned in the 24 hours prior to FOMC statements, according to the New York Federal Reserve.

Ten-year US Treasury bonds were sold at a record low yield at auction yesterday, as fears that the US economic recovery is fading mounted.

Imminent plans for another round of US quantitative easing were ruled out yesterday following the publication of the US Federal Reserve minutes, disappointing markets.

Former boss of Barclays Bob Diamond could be called to Congress to face questions from US politicians, the Guardian reports.

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

The Bush era tax cuts due to expire at the end of the year could send the US economy back into recession unless Congress intervenes, according to leading commentators.