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US regulators subpoena banks in Libor scandal


Barclays, Deutsche Bank and JP Morgan Chase are among the banks subpoenaed

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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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SpeedyLoanSearch said: Its all a scam How does the average person get aheadAnd if we think the governments of the US and UK etc were not behind this interest rate manipulation to control their currency exchange rates and borrowing power we are even bigger fools Wait until someone exposes what they do to the gold marketThe banks are just the henchmen for the US governmentagain

US regulators subpoena banks in Libor scandal
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