2012-07-20nytimes.com

In response to questions from Senate aides, Mr. Alvarez said that the Fed was unable to do more because the alleged manipulation of Libor did not constitute a so-called "safety and soundness" concern -- a term used by bank regulators to signify threats to a lender's viability.

It is hard to see how Mr. Alvarez and his colleagues could have been more wrong -- manipulation of Libor most definitely raises safety and soundness concerns.


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