Euribor manipulation report

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Euribor manipulation report

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There have been more developments in the interest rate manipulation scandal.

The Wall Street Journal reports the European Union is set to accuse several banks of attempting to rig the setting of the Euribor lending rate.

Barclays has already admitted that. Others under investigation reportedly include France’s Credit Agricole and Societe Generale, Britain’s HSBC and Germany’s Deutsche Bank.

Euribor, the euro interbank offered rate, and Libor, the London interbank offered rate, are the key gauges of how much banks pay to borrow from peers, and underpin swathes of financial products from Spanish mortgages to derivatives contracts sealed in London.
Both are set using interbank borrowing rates submitted by banks.

At the same time Britain’s Serious Fraud Office has arrested three British men over alleged manipulation of the London interbank lending rates.

The SFO said on Tuesday three British men, aged 33, 41 and 47, had been taken to a London police station for interviews. They had all been living in Britain.

Sources had said that regulators and prosecutors in the US and Europe were closing in on individual traders they suspected of colluding to rig key benchmark lending rates such as Libor and its euro cousin Euribor.