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Senate panel to ask Bernanke about Libor scandal

WASHINGTON (MarketWatch) - Sen. Tim Johnson, the chairman of the Senate Banking Committee, said Tuesday that Federal Reserve Board Chairman Ben Bernanke should be prepared to discuss the possible illegal manipulation of the London Interbank Offered Rate, or Libor, by banks in Europe, Japan and the United States when he appears before the panel later this month. Johnson said that Treasury Secretary Timothy Geithner should also be prepared to answer senators' questions on the scandal at a separate hearing also to be held this month. Johnson said that his committee staff has begun to schedule bipartisan briefings with "relevant parties" to learn more about the Libor allegations and related enforcement actions. "It is important that we understand how any manipulation may impact American consumers and the U.S. financial system," Johnson said in a statement. The U.K. bank Barclays PLC was fined roughly $450 million for fixing Libor. Barclays has said that Bank of England and Federal Reserve officials were well aware of the issue.