Geithner Testifies on Libor; Greece ‘Hugely Off Track’: Wall Street Roundup

Geithner visits Congress: Treasury secretary Timothy Geithner will testify before the House Financial Services Committee today about the rate-rigging scandal, where it figures he’ll be asked why the New York Fed failed to alert other regulators when a Barclays employee told the Fed that the bank was rigging Libor in April 2008. (Mr. Geithner headed the New York Fed through 2008.)

Early Whale sighting: Bank of England noticed in 2010 that JPMorgan’s chief investment office was taking outsized positions in certain markets, but didn’t share the observation with regulators responsible for supervising the bank, The Wall Street Journal reports. The trades noted in two years ago were not the same bets on corporate credit derivatives that led to $5.8 billion in losses associated with the London Whale.

Whither Europe: Greece is “hugely off track” from the cost-cutting terms of its most recent bailout package, making it likely that the country will require a further restructuring of its debt, European officials told Reuters. Meanwhile, Spain’s borrowing costs are making a sovereign bailout increasingly likely.

What will Libor cost? Investors would like British banks to estimate expected costs of settling investigationsinto the manipulation of interbank lending rates. Barclays paid about $450 million to settle inquiries into its role in the unfolding Libor-rigging scandal; Bloomberg cites one report estimating that civil lawsuits relating to the matter could cost the bank twice as much.

For sale: Former Lehman Brothers chief operating officer Joe Gregory is selling his 15,000 sq. ft. North Shore home, Business Insider reports. The asking price is $22 million.

On second thought… Fun lead in Dealbook: “A technology research analyst who gained notoriety for taunting the federal government over its pursuit of insider trading is expected to plead guilty in United States District Court in Manhattan on Wednesday.”

Rare miss: Apple missed Wall Street’s estimates for the company’s earnings for the second time in nearly 10 years, as iPhone sales fell from the previous quarter.

Bharara sued: The New York Post reports that Yeshiva law student Benula Bensam is suing U.S. Attorney Preet Bharara, the U.S. Marshals and the Department of Justice for unreasonable search and seizure after marshals took her cell phone during the insider trading trial of former McKinsey & Co. CEO Rajat Gupta. Ms. Bensam was pulled from the Southern District courtroom in which the trial was taking place and asked to stop writing letters to the judge.

  Geithner Testifies on Libor; Greece ‘Hugely Off Track’: Wall Street Roundup