Now – more than a dozen banks are being investigated by the U.S. Justice Department to determine just how widespread the rate-rigging scandal, which might have cost consumers billions of dollars, really is. So far, only one bank – Barclays – has been implicated in the scandal. But with the DOJ on the case, and several cities launching their own investigations to figure out if their pension funds took a hit as a result of the rate-rigging, it could just be a matter of time before other banksters’ heads role.
Congress is jumping into the mix, too, with plans to bring Federal Reserve Chairman Ben Bernanke and Treasury Secretary Tim Geithner to Capitol Hill for hearings before the Senate Banking Committee and the House Financial Services Committee.
Given the charade on Capitol Hill when JP Morgan Chase CEO Jamie Dimon came down to testify a few weeks back, we shouldn’t expect too many tough questions about this latest financial scandal. Then again, if Treasury Secretary Tim Geithner knew what was going on while he was head of the Federal Reserve Bank in New York – then we might actually get some answers. After all, if there’s one thing Republicans love more than protecting Wall Street, it’s embarrassing the Obama Administration. Keep an eye on this story.