Seven Banks Under Investigation for Global Interest Rate Scandal

Seven Banks Under Investigation for Global Interest Rate Scandal

Seven international banks have been served with subpoenas over the global interest setting scandal. Barclays, Citigroup, Deutsche Bank, HSBC, JPMorgan Chase, Royal Bank of Scotland and UBS – have been asked to provide relevant “documents and communications” to Eric Schneiderman, the New York attorney-general in collaboration with George Jepsen, Connecticut’s top law enforcement officer.

Photo: Alex Milan Tracy. alexmilantracy.comThe scandal involves LIBOR – or the London Inter Bank Offer Rate – a global system of interest rates for $360 trillion in international deposits. While many of these loans are overnight transfers between banks, they affect the price of consumer loans like mortgages, car loans and credit card loans. The rates are set by the British Bankers Association which makes a considered average of rates reported to them verbally by participating bankers.