Geithner Raised Concerns About Rate Setting in 2008 When Timothy Geithner ran the Federal Reserve Bank of New York, the regulator acknowledged fundamental problems with the process for setting key interest rates in the midst of the 2008 financial crisis, according to documents provided to the New York Times. Mr. Geithner, who is now the Treasury Secretary, questioned the integrity of the benchmark, as reports surfaced that Barclays and other big banks were misrepresenting the rates. In 2008, Barclays had several conversations with New York Fed officials about the matter. Mr. Geithner then alerted top British authorities to the issues with the interest rate, which is set in London. In an e-mail to his counterparts, he outlined potential reforms to the system, suggesting that British authorities "strengthen governance and establish a credible reporting procedure" and "eliminate incentive to misreport," according to the documents provided to the New York Times. But the warnings came too late, and Barclays continued the illegal activity. For years, Barclays reported false rates in an effort to bolster their profit and deflect concerns about the British bank's health. Last month, the bank agreed to pay $450 million to American and British authorities to settle claims that it manipulated key benchmarks, including the London interbank offered rate, or Libor. The case against Barclays is the first action stemming from a broader multi-year investigation into many of the biggest names on Wall Street. Authorities around the world are also pursuing investigations against more than 10 big banks, including UBS, JPMorgan and Citigroup. Since the Barclays settlement, regulators have faced scrutiny for their role in the rate-manipulation scandal. Lawmakers in London and Washington have questioned whether government officials turned a blind eye to years of misconduct at Barclays. Barclays has disclosed that its executives informed regulators, including the Bank of England and the Federal Reserve Bank of New York, that the bank reported artificially low rates, along with the rest of the Wall Street. Earlier this week, the oversight panel of the House Financial Services Committee sent a letter to the New York Fed seeking transcripts from several phone calls the regulators had with executives at Barclays. The New York Fed plans to release the transcripts on Friday. Mr. Geithner is not mentioned in the transcripts, a person briefed on the matter said. But it unclear if other documents will detail whether he had deeper knowledge of the issues with Libor. The New York Fed first got wind of brewing problems with Libor in the summer of 2007. At the time, Barclays executives had started briefing the regulators about their interest rate submissions. Later in Basel, Switzerland, Mr. Geithner discussed the matter with Mervyn King, the Governor of the Bank of England, Britain's central bank, according to the documents provided to the New York Times. Mr. Geithner then followed up with a June 2008 e-mail to Mr. King. In a two-page memo, he outlined fixes to the way big banks set the interest rate, a copy of the memo shows. Mr. Geithner made six main recommendations for "enhancing the credibility of Libor." Mr. King responded "favorably" a person briefed on the matter said, adding that the respective regulators continued discussions. The memo raises new questions about why the Bank of England failed to halt the actions. At a hearing this week, British politicians hammered a senior Bank of England Official for failing to thwart the misconduct. The official, Paul Tucker, was copied on Mr. Geithner's June 2008 e-mail. Lawmakers on Thursday urged action in the global investigation into interest rate manipulation on Wall Street, pushing authorities to pursue criminal charges against central players in the scheme. In a letter to financial regulators and Attorney General Eric Holder, a dozen Democratic senators expressed concern that some of the world's biggest banks were rigging a rate that affected how consumers and companies borrow money. "Much more needs to be done," the senators wrote. Banks and their employees found to have broken the law should face appropriate criminal prosecution and civil action.