Nine more banks added to LIBOR probe

Nine more banks are being summoned by US state prosecutors investigating the LIBOR (London inter-bank offered rate) rate-fixing scandal, according to a report in the Financial Times.

Subpeonas are believed to have been sent by Eric Schneiderman, New York Attorney-General, and George Jepsen, Connecticut Attorney-General to the following banks: Bank of America, Bank of Tokyo Mitsubishi UFJ, Credit Suisse, Lloyds Banking Group, Rabobank, Royal Bank of Canada, Socit Gnrale, Norinchukin Bank and West LB.

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The state legal officers want to examine whether the banks colluded to fix interest rates determined by LIBOR, damaging the states' borrowers and investors as a result.

There are now separate investigations by prosecutors and regulators in the UK, Canada, the US and Japan, examining possible collusion by large financial groups to manipulate benchmark lending rates.

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