LIBOR Scandal Expands, 16 of the World's Largest Banks Now Implicated In Fraud
NEW YORK (CNNMoney) -- A state investigation into whether some of the world's biggest banks manipulated key global interest rates has widened to 16 institutions, according to a source familiar with the matter.
New York state Attorney General Eric Schneiderman issued subpoenas to nine banks in late August as part of an investigation into alleged manipulation of the London Interbank Offered Rate, or Libor, according to the source, who was not authorized to speak publicly.
The Libor process generates rates, based on a survey of banks, that are used as benchmarks for roughly $10 trillion of loans and some $350 trillion of derivatives.
