Dec 10 The European Union is expected soon to
accuse several banks of attempted collusion in the setting of
lending rate benchmark Euribor, the Wall Street Journal
reported, citing people briefed on the probe.
Barclays has already acknowledged trying to rig the
Euribor rate, and other banks are likely to be pressed by
regulators in the United States, Britain and elsewhere into
similar admissions, the Journal said.
At least a dozen banks are under investigation, at least
four of them for allegedly working with Barclays, the newspaper
said, citing disclosures by banks and regulators.
France's Credit Agricole SA and Societe Generale
SA, Britain's HSBC Holdings and Germany's
Deutsche Bank are among other banks being
investigated for possibly working with Barclays to manipulate
Euribor, the Journal said.
All four banks declined to comment to the Journal. None of
the banks could immediately be reached for comment by Reuters
outside of regular European business hours.
Euribor, the euro interbank offered rate, and Libor, the
London interbank offered rate, are the key gauges of how much
banks pay to borrow from peers, and underpin swathes of
financial products from Spanish mortgages to derivatives
contracts sealed in London.
Both are set using interbank borrowing rates submitted by
Euribor-EBF, an arm of the European Banking Federation that
runs Euribor, has warned that nervous banks could quit the
panels that contribute to setting such rates due to ongoing
investigations, undermining the systems used to fix the price of
Reuters parent company Thomson Reuters Corp
collects information from banks and uses it to calculate Libor
rates on behalf of the British Bankers Association (BBA). It
also computes Euribor.