HSBC investigated for manipulating interbank lending rates

PanARMENIAN.Net - The Royal Bank of Scotland and HSBC are being investigated by the Swiss authorities over allegations they manipulated the interbank lending rates which may have distorted the price of trillions of dollars of securities.

The Swiss Competition Commission (COMCO) said it was looking into 12 banks, including RBS, HSBC, Citigroup and Bank of Tokyo-Mitsubishi, after receiving information that derivative traders may have colluded to set the London Interbank Offered Rate (LIBOR) and Tokyo Interbank Offered Rate (TIBOR).

Regulators from America, the European Union and the UK are already investigating whether banks worked together to keep interbank lending rates down to reduce borrowing costs and cap investor panic during the financial crisis.

The other banks involved in the inquiry include Credit Suisse, Deutsche Bank, JP Morgan, Mizuho Financial Group, Rabobank, Societe Generale, Sumitomo, Mitsui Banking Corporation and UBS.

Libor is the rate banks say they charge each other to borrow money, Checking Account Online reported.