U.S. federal prosecutors have expanded their investigation into possible LIBOR manipulation to include nine additional banks among the largest lenders in the world, bringing the total to sixteen, reported the Financial Times on Friday.
According to a source close to the case, New York and Connecticut state attorneys general Eric Schneiderman and George Jepsen have issued binding subpoenas for documentation to nine banks, including Bank of America, Bank of Tokyo Mitsubishi UFJ, Credit Suisse, Lloyds Banking Group, Rabobank, Royal Bank of Canada, Societe Generale, Norinchukin Bank, and West LB, as part of an investigation to determine whether these banks participated in the LIBOR manipulation scandal, the benchmark interest rate for interbank loans.
The mentioned banks declined to comment, were unavailable for comment, or did not respond to requests for comment. Several banks have informed investors about the investigation in this case, noting that they are cooperating with the inquiries.
They join a group of seven banks that are already under scrutiny by U.S. federal prosecutors, namely Deutsche Bank, Citigroup, JPMorgan Chase, Royal Bank of Scotland, Barclays, HSBC, and UBS.
The first investigative requests for documentation and communication records were sent this summer. The U.S. federal prosecutors aim to determine whether the banks in question participated in the secret manipulation of LIBOR, thereby harming borrowers and investors.
LIBOR (London Interbank Offered Rate) is the London interbank offered rate, a variable interest rate calculated on interbank loans among banks operating in the London capital market.
