States Probe Libor Losses

At least 5 state attorneys general investigate alleged rigging of benchmark rate.

Attorneys general in at least five states are conducting investigations tied to alleged manipulation of the London interbank offered rate, adding to probes by U.S. and U.K. authorities.

The probes by New York, Connecticut, Massachusetts, Florida and Maryland are in different stages, according to the states. New York Attorney General Eric Schneiderman and George Jepsen in Connecticut are working together, and Massachusetts is talking with other states about possible coordination.

Interest Rates

Declines in interest rates have left state and municipal governments that sold debt with variable rates mired in swaps they can’t afford to unwind because of high penalty rates.

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