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7 Banks Get Subpoenas Over Libor Scandal

Wednesday, August 15, 2012

WNYC
Barclays Bank Fined Over Libor Investigations (Oli Scarff/Getty Images)

New York State is looking more closely into the alleged role banks played in rigging the interbank lending rate known as Libor.

A source close to the New York Attorney General's office confirms to WNYC that the office has issued subpoenas to seven banks over the possible manipulation of the London Interbank Offered Rate, the rate that banks agree to charge to lend each other money on a short-term basis.

The banks that received the subpoenas included Barclays, Citigroup, Deutsche Bank, JPMorgan Chase, HSBC, Royal Bank of Scotland and UBS.

The Associated Press reports that the Connecticut Attorney General also issued subpoenas to the banks.

Barclays has already been fined $453 million by federal authorities for submitting false data

Legal experts say it’s uncommon for the issuance of subpoenas to become public knowledge.

"I always find it to be tremendously curious whenever a state law enforcement agency goes public with the issuing of subpoenas," said Neil Barofsky, a senior fellow at NYU Law School and formal federal prosecutor.

"I mean it's not an incredibly meaningful part of an investigation, all it is is a request for documents," he said.

Barofsky said it's also curious that the Attorneys General decided to act after federal and international authorities took action against Barclays and already made their investigation into Libor public.

With the Associated Press

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