RBS and Lloyds among 12 banks in LIBOR probe

RBS and Lloyds, the two UK tax-payer backed banks, are among a dozen financial groups being investigated for manipulating the LIBOR rate, which resulted in a record £290m regulator fine for Barclays, it was revealed yesterday.

HSBC, Citigroup, J.P. Morgan, Deutsche Bank, UBS and the inter-dealer broker ICAP are also reported to be under investigation by regulators across the world. UBS has already secured partial immunity in exchange for co-operation, The Telegraph reported, and Lloyds has already suspended two derivatives traders as part of the investigation. Yesterday, Barclays was hit with a £60m fine from the FSA and a £230m fine from the US regulator, the Securities and Exchange Commission, as traders were found to have manipulated the inter-bank lending rate LIBOR and EURIBOR. Barclays, and the oth...