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LIBOR probe ‘turns to European banking giants’

by: Katie Holliday
  • 19/07/2012
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Regulators have turned their attention to at least four of Europe’s largest banks in a continued investigation of manipulation of the LIBOR benchmark interest rate.

HSBC, Crédit Agricole, Deutsche Bank and Société Générale aare under scrutiny after suspicions arose surrounding the banks’ alleged collusion with Barclays in manipulating the LIBOR rate, according to reports.

Anonymous sources have told both the FT and Bloomberg that there is evidence of links between traders at all four banks and Barclays’ former euroswaps trader Philippe Moryoussef.

His strategy was based on the fixing of three-month swaps pegged to Euribor – the euro-base interbank lending rate set in Brussels by averaging 44 banks’ submissions.

Headlines have been dominated by Barclays’ role in the LIBOR scandal over the past few weeks, which has cost the bank £290m in fines and led to a clear-out of senior management including chief executive Bob Diamond (pictured).

Policymakers around the world are now calling for an overhaul of the system which underpins $500trn of global contracts.

For all our coverage of the LIBOR scandal, click HERE

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