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FBN’s Liz MacDonald on the New York Attorney General issuing subpoenas to a number of banks in the Libor scandal investigation.
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Breaking news and allow staff and -- state attorney general issuing subpoenas to several banks so that that liable scandal fox business's Liz MacDonald all over the story she's joining us now with the latest.
Yeah that's right Liz and actually we've got JPMorgan Chase Barclays UBS -- bank Royal Bank of Scotland HSBC.
Are in the cross hairs of a New York attorney general.
Who is conducting a joint civil and potentially -- criminal probe with the state of Connecticut were also in touch with JPMorgan Chase it declined to comment to Fox Business.
Also as we've been in touch with Citigroup Citigroup is acknowledging that new York and Connecticut have contacted Citigroup.
With requests for information not confirming there's been a subpoena to Citigroup we've been a touch of Bank of America -- saying it is not heard from New York or Connecticut yet.
But did confirm to Fox Business it has already received federal subpoenas.
From the department of justice and also -- that is increase in the UK's FSA the financial services authority so there's a range approach -- investigations going on here the pointedly made about New York is that they New York attorney general has really powerful tools.
In his legal arsenal including the Martin act -- that lets authorities basically establish financial fraud without proving intent to defraud.
That's -- issue here so were also basin via Libya is on the stick here.
What the -- alleging is that they -- rating here was are basically that banks.
Artificially lowered Libor that interest rate that is used to -- interest rates swaps.
And in doing so the states -- making the case that that hard they're -- finances are there cities and towns finances.
By lowering the returns that the financial contracts that the banks would all with the payments of the banks that -- to the states and towns.
It's going to be complicated case go to work around it we're on this this -- -- you guys but it get back to a more developments as they occur.
Actually that's great stuff is going to be immediate work to both ways to lament libelous -- very -- for these.
States and cities to prove they cases can be difficult but the average banking authorities should really be the ones taking -- but its us here in New York thank you less sure.
