July 22, 2012
Sources familiar with investigation say American prosecutors close to arresting individuals over Libor scandal
American prosecutors and European regulators are close to arresting individual traders over the Libor scandal and charging them with colluding to manipulate global benchmark interest rates, according to sources familiar with the investigation.
Federal prosecutors in Washington DC have recently contacted lawyers representing some of the individuals under suspicion to notify them that criminal charges and arrests could be imminent, said two sources speaking anonymously.
Defence lawyers representing individuals under suspicion said prosecutors have indicated they will begin making arrests and filing charges in the next few weeks. In long-running financial investigations it is not uncommon for prosecutors to contact defence lawyers for individuals before filing charges to offer them a chance to co-operate or take a plea, the lawyers said.
Alongside the investigation into how traders allegedly sought to influence the London Interbank Offered Rate, or Libor, and other global rates there is an effort by regulators to punish major banks with fines.