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.

These banks join Deutsche Bank, Citigroup, JPMorgan Chase, Royal Bank of Scotland, Barclays, HSBC and UBS, who are already under investigation.

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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.

CM