Nine More Banks Targeted in Libor Probe

SocGen, RBC and B of A among banks said to get subpoenas from N.Y., Conn.

Societe Generale SA, Royal Bank of Canada, and Bank of America Corp. are among nine additional banks that were subpoenaed in New York and Connecticut’s probe of alleged manipulation of Libor, a person familiar with the matter said.

The subpoenas, issued by New York Attorney General Eric Schneiderman starting in August, bring to 16 the total number of banks that have been subpoenaed in the states’ investigation, said the person, who asked not to be identified because there wasn’t authorization to speak publicly.

Schneiderman and Connecticut Attorney General George Jepsen are jointly investigating claims that banks rigged the London interbank offered rate, or Libor, a worldwide benchmark for borrowing. The same person said in August that seven banks were subpoenaed in their investigation, including JPMorgan Chase & Co. and Barclays Plc.

The states are coordinating with “a much larger group of attorneys general,” Susan Kinsman, a spokeswoman for the Connecticut attorney general, said in September. Florida Attorney General Pam Bondi has also issued subpoenas to more than a dozen financial institutions, including UBS AG, Deutsche Bank AG and HSBC Holdings Plc.

Besides Societe Generale, Royal Bank of Canada and Bank of America, the other six banks to receive subpoenas from New York are: Credit Suisse Group AG, Bank of Tokyo Mitsubishi UFJ Ltd., Norinchukin Bank, Rabobank, Lloyd’s Banking Group Plc, and West LB AG, a German lender that ceased operations.

Representatives of those banks couldn’t be reached for comment or declined to comment on the subpoenas.

Lloyd’s has said it is assisting various regulators in their investigations into the setting of Libor. Royal Bank of Canada has said it is cooperating with regulators and found no evidence of collusion with other banks.

Rabobank said in a report this year that it has received subpoenas and requests for information from regulatory agencies in the U.S., Europe and Asia and is cooperating.

Melissa Grace, a spokeswoman for Schneiderman, and Jaclyn Falkowski, a spokeswoman for Jepsen, declined to comment on the probe.


Bloomberg News


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