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Libor investigation grows


Libor investigation grows


US prosecutors have more banks in their sights over the Libor international interest rate fixing scandal.

Reportedly JPMorgan Chase, Deutsche Bank, Royal Bank of Scotland and HSBC Holdings are among those ordered to hand over information as part of a joint investigation by the attorneys general of New York and Connecticut.

Looking for evidence of collusion they want records of communications between the banks.

UBS and Citigroup were reportedly earlier asked for similar data.

Barclays is also part of the probe. In June it was fined the equivalent of 366 million euros by British and US authorities for manipulating the rate.

If there are criminal prosecutions that would help investors claiming damages for losses through civil lawsuits.

Libor – the London interbank offered rate – is compiled from estimates by banks of how much they believe they have to pay to borrow from each other. It influences rates on many lending transactions, including mortgages, student loans and credit cards.

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