The Libor scandal continues to grow. The New York and Connecticut attorneys general have now subpoenaed seven large banks, with a round of subpoenas recently issued to JPMorgan Chase, Deutsche Bank, Royal Bank of Scotland, and HSBC, in addition to Barclays, a source told the AP yesterday. Citigroup and UBS also received subpoenas earlier this year, and a source tells Bloomberg yet more banks could find themselves in the crosshairs soon.
The attorneys general issued the subpoenas because Libor is also used to determine the rates for the bonds issued by city and county governments. News of the investigation sent JPMorgan's stock down almost 1% yesterday.