Rate rigging probe escalates in Europe

  • A global investigation into the manipulation of interbank lending rates has widened across Europe with Britain's fraud office and Germany's markets regulator launching probes.

    Authorities in the United States, Japan and Canada are also examining more than a dozen big banks over suspected rigging of the London Interbank Offered Rate (Libor).

    British bank Barclays has so far been the only group to admit wrongdoing and will pay a fine of more than $450 million.

    Britain's Serious Fraud Office said its Director David Green had decided formally to accept the Libor case for investigation.

    The Libor rates are used to determine interest rates on trillions of dollars worth of contracts around the world.

    Germany's BaFin regulator is looking into Deutsche Bank with a "special investigation".

    The results of the investigation are expected to be released next week.