US regulators subpoena banks in Libor scandal
Barclays, Deutsche Bank and JP Morgan Chase are among the banks subpoenaed
By CFOWorld staff | CFO UK | Published 11:45, 16 August 12
A number of British, European and US banks have been handed subpoenas by US regulators in connection with the Libor manipulation, Reuters reported on Thursday.
Sources told Reuters that Barclays, Deutsche Bank and JP Morgan Chase are among the banks subpoenaed in a joint New York-Connecticut investigation of possible rigging of the international benchmark interbank lending rates.
New York attorney general Eric Schneiderman and Connecticut attorney general George Jepsen have been looking into the possible rigging and manipulation of Libor by global banks for months, their offices have said.
As part of that investigation, subpoenas were sent in recent weeks to Royal Bank of Scotland and HSBC Holdings, in addition to JPMorgan, Deutsche and Barclays, said the person who was not authorised to speak publicly about the matter.
Earlier, UBS AG and Citigroup received subpoenas as well, the source said.
The subpoenas seek communication between executives related to possible collusion and other conduct that may have played a role in alleged rate manipulation, among other information, the person said.
Authorities around the world are investigating banks over alleged manipulation of the rates.
Most of the banks have disclosed receiving demands for information from numerous agencies; others declined to comment.
Libor, the London interbank offered rate, is compiled from estimates by banks of how much they believe they have to pay to borrow from each other. It influences rates on many lending transactions, including mortgages, student loans and credit cards.
In June, Barclays was fined £290 million by UK and US authorities for manipulating the rate. Its chief executive Bob Diamond (pictured) was one of three senior executives to lose his job in the wake of the scandal.
photo credit: Reuters
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