States Step Into Libor Probe

BY JEAN EAGLESHAM, REED ALBERGOTTI AND MICHAEL CORKERY

Prosecutors in New York and Connecticut are investigating whether their states incurred losses as a result of interest-rate manipulation by banks, a probe that could lead to a wider multistate enforcement action, according to New York officials.

The joint probe by New York Attorney General Eric Schneiderman and Connecticut Attorney General George Jepsen could lead to civil enforcement action, including possible breaches of antitrust and fraud laws, the officials said.

The state investigations add to the potential legal and financial burden on the 14 or more banks ensnared in an escalating scandal related to manipulation of the London interbank offered ….”