Protecting Floridians Against Unfair Consequences from Intentional Libor Manipulation

Governor Rick Scott sent a letter asking Florida’s Congressional Delegation to focus attention on any unfair consequences that may have resulted from intentional Libor manipulation in order to protect the cost of living, retirement and investments of Floridians.

View a PDF of the letter

Full Text –

 

 

July 17, 2012

 

 

 

Members of the Florida Congressional Delegation

United States House of Representatives

Washington, DC

RE: Protecting Floridians Against Unfair Consequences from Intentional Libor Manipulation

 

Dear Representatives:

I write to you today to bring your attention to a matter of great concern for hardworking Floridians. As you are already aware, late last month Barclays Capital agreed to a settlement of over $450 million with regulators in the United States and United Kingdom for their efforts to intentionally manipulate the Libor to advantage their business operations. There is growing evidence that this problem expands far beyond a single financial institution’s intentional manipulation of Libor submissions. With the potential for such widespread implications, many questions have arisen about the impact these practices may have had on Florida families and small businesses during a time period in which many of them were struggling to find work and pay their mortgages. The potential impacts on the income, retirement savings and costs of living for so many Floridians deserve immediate attention to ensure that they have not and will not suffer unfair consequences as a result of this severe breach of trust.

Based on what has been reported already, these inappropriate banking practices have cost hardworking Floridians money. As investigations into other institutions proceed, the question that must be answered is “how much money has this cost Florida families?”

I respectfully request that in the coming weeks, Florida’s Congressional Delegation focus attention on this issue to determine the extent to which Libor manipulation may have driven up interest rates unfairly or denied the appropriate returns on retirement savings and other investments. It is inexcusable for any bank to have wrongly profited from such misleading practices while Floridians have worked hard to create jobs and opportunities in our state.

Additionally, allegations that the Federal Reserve Bank of New York may have been advised of problems with Libor reporting deserves a thorough investigation to ensure that sufficient action was taken to protect Americans from the impacts of these practices. When Floridians are struggling, it is of the greatest importance that the they are able to maintain confidence that the duties they have entrusted to their government are being carried out faithfully and diligently.

I am aware that the House Financial Services Committee, on which Congressman Bill Posey sits, will meet tomorrow on the state of the economy and monetary policy with Federal Reserve Chairman Ben Bernanke, and that this issue could be discussed. As Congressional hearings continue, I would sincerely appreciate your consideration and investigation of the potential impacts of Libor manipulation on our residents as well as a careful review to ensure the federal government acted to sufficiently to protect the cost of living, retirement and investments of Floridians.

 

Sincerely,

 

Rick Scott

Governor


 

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