Bank of America Being Questioned on Libor
Bank of America is being questioned by regulators about its role in setting a key global interest rate. Executives on the firm’s quarterly conference call acknowledged that the firm was cooperating with U.S. and foreign regulators about its role in setting the London Interbank Offer Rate (Libor).
BofA is a defendant in Libor-related litigation, the bank's executives said on the call. New investigators have entered the field, including the New York Attorney General Eric Schneiderman.
The company's CFO Bruce Thompson said the company is in the group of banks that sets Libor(click here for more on Libor).
“Not unlike others, we have received and are cooperating with the inquiries that we get from both the U.S. and the foreign regulators,” said Thompson. “We're also one of a number of defendants in some of the other Libor-related litigation and just given the fact that these are active matters, there's really not a lot more that we can say on that.”
Bank of America's CEO Brian Moynihan said the bank's clients were weighed down by the uncertainty of Europe and U.S. fiscal issues.
Earlier on Wednesday, the bank reported quarterly earnings that beat analysts' expectations.
— Written by CNBC's Margaret Popper