US regulators seek bank employees as witnesses in Libor probe – report

March 24 (Reuters) – U.S. regulators have asked Citigroup
, Deutsche Bank , Bank of America and
JPMorgan Chase to make employees available as witnesses
in a Libor probe, Bloomberg said, citing two people briefed on
the plans.

The banks, members of the panel that sets the interbank
offered rate known as Libor, were asked to appear voluntarily
for the interviews in London in April with the UK Financial
Services Authority, the people told the agency.

Investigators are probing whether banks understated Libor to
reduce borrowing costs and downplay investor panic during the
financial crisis.

About $350 trillion worth of financial products globally
reference Libor, and lower levels for the rate could have robbed
lenders and investors of significant amounts of interest income.
Borrowers, on the other hand, would have benefited.

All four banks declined to comment on the matter to
Bloomberg.

Reuters could not reach the banks for comment outside
regular U.S. business hours.

(Reporting by Sakthi Prasad and Arup Roychoudhury; Editing by
Vinu Pilakkott)

US regulators seek bank employees as witnesses in Libor probe – report