Geithner leaked bank rate cut in 2007: Fed official

It may or may not have been illegal. But Geithner, chief of the New York Fed at the time, certainly gave the big banks a decided advantage in the market by leaking to them a planned cut in a key interest rate by the Federal Reserve. Reuters: In the summer of 2007, as storm clouds gathered over the world's financial system, then-New York Federal Reserve President Timothy Geithner allegedly informed the Bank of America and other banks about the possibility the U.S. central bank would lower one of its critical interest rates, according to a senior Fed official. Jeffrey Lacker, the head of the Richmond Fed, originally raised the allegation during a Fed conference call in August 2007, and he stuck to his 5-year-old claim against the current U.S. treasury secretary in a statement provided to Reuters on Friday. "From conversations I had prior to the video conference call on August 16, 2007, I was aware of discussions among a few large banks about borrowing from their discount...(Read Full Post)