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Republicans grill Geithner over Libor scandal
 
Treasury Secretary Tim Geithner says the federal debt will likely reach its $14.3 trillion ceiling within five weeks, which means the debt ceiling has to be raised, or the government could default on its debt.
Treasury Secretary Tim Geithner says the federal debt will likely reach its $14.3 trillion ceiling within five weeks, which means the debt ceiling has to be raised, or the government could default on its debt.
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On Wednesday, Treasury Secretary Timothy Geithner was grilled by Republicans on the House Financial Services Committee over the Libor rate-rigging scandal, in which big banks allegedly manipulated a benchmark interest rate used in trillions of dollars worth of financial transactions. As head of the New York Federal Reserve in 2008, Geithner has been accused of turning a blind eye to the rate-rigging even when he was alerted to suspicious activity, and Republicans on the committee hammered him on that point. "It appears you treated it as a curiosity, or something akin to jaywalking, as opposed to highway robbery," Rep. Jeb Hensarling (R-Texas) said. Geithner denied the insinuation, saying he notified his fellow regulators as soon as he heard of possible wrongdoing. 

 

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