9 More Banks Subpoenaed Over Libor

9 More Banks Subpoenaed Over Libor


Nine more banks have received subpoenas in connection with a probe
into alleged widespread interest-rate manipulation by banks, a person
familiar with the investigation said.

The probe, a joint effort by the offices of New York Attorney General
Eric Schneiderman and Connecticut Attorney General George Jepsen, could
lead to civil enforcement action related to breaches of antitrust and
fraud laws.

The subpoenas, which were issued in August
and September but haven't been previously reported, bring the total
number of subpoenas in the case to 16. The banks involved in the probe
include most members of the panel that helps set the dollar London
interbank offered rate.

The investigation by the state prosecutors is part of a global probe,
in which more than a dozen federal and other regulators across three
continents are looking into allegations that several banks rigged Libor.




Nine more banks have received subpoenas in
connection with a probe into alleged widespread interest-rate
manipulation by banks, a person familiar with the investigation said.
Photo: Getty Images.

The nine banks that received subpoenas in August and September were: Bank of America Corp.,

Bank of Tokyo Mitsubishi UFJ, Credit Suisse Group AG,

Lloyds Banking Group

PLC, Rabobank Groep NV, Royal Bank of Canada,

Société Générale, Norinchukin Bank and West LB AG, according to the person familiar with the investigation.
The
person confirmed that seven other banks had received subpoenas in the
investigation. Information about those subpoenas were made public
previously.

Representatives for Bank of America, Credit Suisse, Bank of Tokyo and
Norinchukin Bank declined to comment. The other five banks subpoenaed
in August and September that hadn't previously been disclosed couldn't
be reached for comment. Two of the banks disclosed the subpeonas in
financial filings.

The joint probe of the two attorneys general was reported by The Wall Street Journal earlier this year.

The New York-Connecticut Libor investigation focus on the ways Libor
rates could have affected investors, state agencies and municipalities
that invested in interest-rate swaps tied to the rate to help manage
their debt costs. The losses that may have occurred because of rate
manipulation could have a direct impact on state finances. Interest-rate
investigations are also occurring in other states, including
Massachusetts and Florida, the Journal previously reported.

Barclays

PLC paid about $450 million to U.S. and U.K. regulators as part of a
settlement in which the British bank admitted that executives and
traders had manipulated Libor. The deal led to the resignation of the
firm's CEO and chairman.


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