State attorneys general are jumping into the widening scandal over whether banks tried to manipulate benchmark international lending rates, a move that could open a new front against the top global banks.
A handful of state attorneys general said they are looking into whether they have jurisdiction over the banks, and are starting preliminary discussions to determine what kind of impact the conduct involving the Libor rate may have had in their states.
"Our office is aware of the allegations around the manipulation of the Libor, and we are working with other state agencies to determine whether Massachusetts has suffered any losses as a result," a spokesman for Massachusetts Attorney General Martha Coakley said.
A spokesman for Florida Attorney General Pam Bondi said his office is aware of the recent settlement reached by British bank Barclays with U.S. and UK authorities and "will look at the case to the extent that our office might have any jurisdiction in the matter."
Barclays last month agreed to pay $453 million to settle charges that it manipulated Libor -- the London interbank offered rate, which is compiled from estimates by large international banks of how much they believe they have to pay to borrow from each other.
Read more: http://www.reuters.com/article/2012/07/11/us-banking-libor-states-idUSBRE86A1H420120711
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