Lloyds latest UK bank to face Libor-rigging inquiry

Lloyds Banking Group has become the latest British lender to be drawn into the Libor-rigging investigations by state prosecutors in the US.

Several other European banks have also received the requests for information Photo: Getty Images

By Harry Wilson

 

The bailed-out lender is one of nine banks to receive subpoenas from New York attorney-general Eric Schneiderman and his Connecticut counterpart George Jepsen.
 

Several other European banks have also received the requests for information, including Credit Suisse and Societe Generale, as well Bank of America and Japanese lenders Bank of Tokyo-Mitsubishi UFJ and The Norinchukin Bank.

The subpoenas were originally issued in August, according to The Wall Street Journal, and are part of the same investigation that saw Barclays, HSBC and Royal Bank of Scotland, as well as Citigroup, Deutsche Bank and JP Morgan being served with requests for information.
 

Barclays is the only bank to have admitted attempting to rig the key inter-bank lending rate which influences the price of trillions of pounds of assets. In June it paid £290m to the US and British authorities to close their investigations into its role in the scandal.
 

Investigators across the world are continuing to examine the extent of Libor manipulation and further settlements are expected. Criminal charges could be brought against any bank staff found to be involved.

Today, Royal Bank of Scotland was reported to have suspended a Singapore-based foreign exchange trader in connection with the Libor investigation.

 

Meanwhile, Barclays deputy chairman Sir Michael Rake has denied that he plans to resign from the bank in the near future.

Responding to reports that he could quit the scandal-hit lender within the next six months, Sir Michael said he was committed to staying at Barclays and had “no present intention” to stand down from the board.