Seven Banks Subpoenaed in Libor Investigation

Seven banks have received subpoenas as part of an investigation into the alleged manipulation of the London Interbank Offered Rate, according to a source close to the case and company filings.


The banks that were subpoenaed by New York State Attorney Eric Schneiderman include JPMorganChase, Citigroup, Barclaysand UBS.

In a recent filing with the U.S. Securities and Exchange Commission, Citigroup said its subsidiaries "have received additional requests for information and documents from various U.S. and non-U.S. governmental agencies, including the offices of the New York and Connecticut Attorneys General."

The other banks are Deutsche Bank, HSBC and the Royal Bank of Scotland, a person with knowledge of the matter told The Associated Press on Wednesday.

American and British regulators have already fined Barclays, based in Britain, $453 million for submitting false information between 2005 and 2009 to keep the interest rate, known as LIBOR, low.

The rate is used to set the interest rates on trillions of dollars in contracts around the world, including mortgages and credit cards.

It is a self-policing system and relies on information that global banks submit to a British banking authority.

The New York and Connecticut attorneys general issued the subpoenas because LIBOR is also used to determine the rates for the bonds issued by city and county governments, the person with knowledge of the matter told AP.

Barclays has admitted that it submitted figures that were lower than accurate for its interbank borrowing, including during the financial crisis in the fall of 2008. Those reports made it appear that Barclays was healthier than it was.

UBS filed a report with regulators July 31 saying that agencies including state attorneys general were examining whether it and other banks had tried to manipulate the rate. A spokeswoman for Barclays declined further comment.

Citigroup and JPMorgan Chase declined comment.