Daily Archives: July 17, 2012

Claire Jones

Federal Reserve chairman Ben Bernanke. Image by Getty.

Federal Reserve chairman Ben Bernanke. Image by Getty.

Hello and welcome to today’s live blog on Federal Reserve chairman Ben Bernanke’s testimony on monetary policy to the Senate’s Committee on Banking, Housing and Urban Affairs. 

The hearing begins at 10am DC time (3pm UK time). 

All times are UK time. 

 17.26 This live blog is now closed.

17.26 That’s the last of the questions. The hearing is adjourned.

17.22 On alternatives to Libor, Bernanke says the general collateral repo rate is a “possibility”. Another possibility would be the overnight index swap rate. Crucially, both a observable market rates, rather than rates reported by banks. “I suspect [the alternatives] will be seriously considered unless measures are taken to restore confidence in Libor,” he says. “The problem is we have so many contracts that are based on Libor.”

17.17 The Fed chair (and scholar of the Great Depression) on European monetary and political union: 

Claire Jones

Some embarrassment for Paul Tucker today in the form of a chummy email exchange between him and Bob Diamond (see the final paragraph of the letter below).