Group of American senators call for more vigorous Libor probe

July 13, 2012, Friday/ 12:21:00

A group of Democratic US senators pressured Attorney General Eric Holder and financial regulators on Thursday to step up investigations into whether global banks manipulated benchmark interest rates.

The senators, including Carl Levin, Jack Reed and Dianne Feinstein, said investigators should also look into allegations that US and foreign bank regulators may have been aware for years of wrongdoing in the setting of the London Interbank Offered Rate, or LIBOR. Lawmakers in the United States have slowly become more outspoken about the allegations, which already have caused uproar in London. The letter represents the toughest political pressure yet on US investigators to find and punish banks and regulators that may have been involved in the scandal. "Just like the banks and executives they oversee, regulators who were involved should be held to account for any failures to stop wrongdoing that they knew, or should have known about," the senators said in a letter dated Thursday to Holder, Treasury Secretary Timothy Geithner and members of the Financial Stability Oversight Council.

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