JPMorgan, Other Banks Pulled Into Libor Probe

Seven banks subpoenaed
By Kevin Spak,  Newser Staff
Posted Aug 16, 2012 10:58 AM CDT
In this Tuesday, June 19, 2012, file photo, Jamie Dimon, CEO of JPMorgan Chase, testifies before the House Financial Services Committee on Capitol Hill.   (AP Photo/Jacquelyn Martin, File)
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(Newser) – 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. (Read more JPMorgan Chase stories.)

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