Frank calls Libor scandal "outrageous" US Congressman Barney Frank, who spearheaded the sweeping US financial regulation law that bears his name, said the Barclays interest-rate rigging scandal is "outrageous" and called for "tougher regulation" of banks. Mr Frank's reaction to the rate-setting investigation is the first strongly worded political response from Washington about the allegations first unveiled last month when Barclays paid $450m to settle with US and UK regulators and admitted it attempted to manipulate the London Interbank Offer Rate, or Libor, to benefit trading positions and bolster its reputation during the financial crisis. The allegations set off a political firestorm in London, prompting the ousting of Bob Diamond, the UK bank's chief executive, and finger pointing among politicians and central bankers. The reaction in the US has been muted as the settlement was announced one day before the US Supreme Court upheld the Obama administration's healthcare law and as Washington insiders departed town for the Independence Day holiday. Lawmakers return from recess on Monday. Banks "monkeying with the Libor this way for their own financial benefit [is] outrageous," Mr Frank, the top Democrat on the House financial services committee, told the Financial Times. "I hope there will be hearings in both the House and the Senate," he said, adding they should call "the whole structure of Libor into account." Mr Frank co-authored the Dodd-Frank legislation, which brought oversight to the over-the-counter derivatives market, set limits to banks" risk-taking, and required consumer protections in the sale of home mortgages and other financial products. He will not run for re-election this year but still has influence among the chambers. Agencies are still implementing requirements of the Dodd-Frank law, including the Volcker rule banning banks from trading for their own accounts. Mr Frank said lawmakers needed to "beef up" the regulators and give them "tough rules like the Volcker rule, like the ring fencing, like strict rules on derivatives." Still, the odds of Congress passing new regulations in the Republican-controlled House are low. Republican lawmakers are trying to repeal aspects of the Dodd-Frank law. On Tuesday a House subcommittee will hold a hearing examining whether the "rules and red tape make it harder for American companies to raise capital, hedge risks and obtain credit - activities that are necessary for businesses to grow and hire workers." The Libor probe has ensnared 20 financial institutions, including US banks JPMorgan Chase, Citigroup and Bank of America. Libor is a benchmark interest rate used to set the prices for numerous other financial products, including mortgage rates.