The New York Fed was apparently aware of Libor-rigging at some level in 2007 and serious concerns – although presumably not the full details of what the C.F.T.C. later established – had reached the most senior levels of the Federal Reserve System by early 2008.Well then, don't just stand there, do something... like communicate with the officials at the Bank of England (the 'L' in LIBOR standing for London, after all). So, that being done, and specifically including concerns about the British Bankers Assn's 'financial interests in LIBOR', shouldn't the question be, why didn't those English authorities act to remedy to situation.
Professor Johnson seems not to have considered that. Opting instead for, shall we say, a hook that a candidate for Massachusett's senate seat might find useful?
...why didn’t the Fed do anything itself about the rigging of Libor....Oh, we don't know...maybe the Fed has no jurisdiction over what happens in London?