JPMorgan, Barclays, Deutsche Bank subpoenaed in Libor investigation

George Jepsen

Subpoenas were sent recently to several major banks being investigated in the Libor scandal, including Barclays, Citigroup, Deutsche Bank, HSBC, JPMorgan Chase, Royal Bank of Scotland and UBS.

George Jepsen, the attorney general of Connecticut, and Eric Schneiderman, the attorney general of New York, are jointly investigating manipulation of a key interest rate known as the London interbank offered rate—more commonly known as Libor, BusinessWeek reports.

The subpoenas seek information related to communications between bank executives as it relates to alleged collusion to manipulate Libor.

Sarah Binnie, a spokeswoman for RBS, said that the bank continuously receives requests from other regulators regarding the Libor investigation.

“It is not possible to estimate with any certainty what effect these investigations and any related developments may have on the group,” Binnie said, according to BusinessWeek.

A spokeswoman for Jepsen’s office said last month that the attorneys general hoped to issue restitution to municipal entities and local governments that were affected by Libor manipulation, TODAYOnline reports.

Barclay’s admitted that it submitted artificially low rates as part of an effort to manipulate Libor to deflect concerns regarding the bank’s health, thereby initiating a string of investigations. Public ire following news of Barclays’ attempts to manipulate Libor forced former CEO Bob Diamond and chairman Marcus Agius to resign, though Agius agreed to stay on as executive chairman.

Comments are closed.