Wednesday, February 29, 2012

USA Conducting Criminal Probe of LIBOR Rate Setting by Banks


The LIBOR rate underpins loans to consumers, companies derivatives,  interest-rate swaps, floating- and fixed-rate interest payments. 
(Reuters) - The Justice Department is conducting a criminal probe into whether the world's biggest banks manipulated a global benchmark rate that is at the heart of a wide range of loans and derivatives, from trillions of dollars of mortgages and bonds to interest rate swaps, a person familiar with the matter said.
While the Justice Department's inquiry into the setting of the London interbank offered rate, or Libor, was known, the criminal aspect of the probe was not.

A criminal inquiry underscores the serious nature of a worldwide investigation that includes regulators and law-enforcement agencies in the United States, Japan, Canada and the UK.

Several major global banks, including Citigroup Inc, HSBC Holdings Plc, Royal Bank of Scotland Group Plc and UBS AG, have disclosed that they have been approached by authorities investigating how Libor is set.

Complete article: here: http://www.reuters.com/article/2012/02/28/us-libor-probe-idUSTRE81R1ZG20120228

1 comment:

  1. All banks are complicit in this Crime they are calling a scandal. I think that this is just the tip of the iceberg and there is much more to follow.

    This is why all the heads of the banks and federal reserve have a get together on Jekyll island to discuss the next big ponzi scheme they are going to introduce to screw the public. I hope that justice is done and they are criminally charged with fraud and theft and thrown in jail as the common thieves that they surely are.

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