U.S. Treasury secretary Timothy · cover Turner (Timothy Geithner) is ready to resign last Friday, the former colleagues put forward charged him with the information in the plan of interest rates, he led the New York federal reserve bank the embarrassing questions.
Some former officials say the charges, if true, shows that institutions are likely to break the rule, because interest rates are likely to be kept secret, a said, the central bank should look into the matter. No matter it is not clear.
"Hang up discount rate decision and discussion is absolutely confidential, said:" the holy saint Louis before the fed chairman William Poole (William Poole), who is the central bank's policy group time, but did not participate in the 2007 telephone is proposed in this meeting charges.
, the federal reserve in Washington and New York federal reserve bank board of directors has refused to comment on the report.
The central bank interest rate decision, the market is very sensitive, shall have the right to make a from New York, Tokyo, London, asset prices and the federal reserve guard, they carefully.
The federal reserve bank governor in "should be strictly protect privacy (fed) system information, if found, anyone benefit or damage of the system operation and the effectiveness of the policy," according to the federal reserve about moral in management manual guidance.
Accused of say, cover Turner to Bank of America (Bank of America) plans to cut the so-called discount interest rates Richmond federal reserve Bank chief raquel August 16, 2007, as the financial crisis of the booster. Surface public last Friday in its 2007 policy meeting, the federal reserve announced report card, and reiterated raquel in a statement issued after the report, the public.
In the call process, cover Turner, some analysts think that, as a potential future federal reserve chairman, denied the charge. The ministry of finance has declined further comment, cover Turner I keep silence.
Before the Minneapolis Lord Gary stern, who participated in the conversation, said he clearly review discussed. "This is an unusual rate by the U.S. federal reserve standards," he said.
Stern stressed that he doesn't know the advantage of the situation, but he said he believes everyone to the fed will feel strong confidentiality rate discussion.
"I will avoid any ventilation and anyone. I'll work hard, don't do that unintentional. In the fed has a lot of things are confidential crisis or not, I won't do that," he said.
This day, the federal reserve keep call, staged a explosive American market tail plate rebound, part of the reason that, the central bank to cut interest rates to. They further rising one day, when the federal reserve to cut discount rate it charges to Banks for loans, and the possibility of signal is more and more big, the cut the federal funds rate, the main economic lever.
In the federal reserve meeting to participate in policy before the group or the central bank's general counsel secretary said: should have been put forward charges raquel look, if any rules are broken. General counsel Scott alvarez, as well as the committee secretary, Brian MaDiGen, the person's call.
According to a person familiar with the matter, raquel has with the United States at the time of the CEO Ken lewis, causing him to believe that this conference call day cover Turner talked about some Banks, including the United States and Morgan chase Manhattan bank conversation, the plan to reduce the rate of discount.
This is jpmorgan chase, Citigroup (Citigroup) and Bank of America (Bank of America) borrow $25 billion the federal reserve and the guide to asset-backed commercial paper market turmoil, this is a part of the effort. The plan has not been able to achieve. All bank declined to comment on this article.
Cover Turner's talk inconvenient raquel because he felt it broke the agreement of the federal reserve bank governor in other parts of the bank and the President not to talk, according to the source. It also bothering him, because he thinks it is against the credit policy of the federal reserve team discuss future action time, this person said.
 



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