The other shoes have finally dropped in the LIBOR investigation. Seven other shoes, in fact. Attorneys general in New York and Connecticut have subpoenaed seven of the world's biggest banks, including Citigroup and JPMorgan Chase here in the U.S.
today, there's word that a number of other banks -- including JPMorgan Chase and Citigroup -- are being subpoenaed by regulators in New York and Connecticut. It's all about charges that the banks rigged an interest rate called LIBOR.
Today as Treasury Secretary Timothy Geithner was officially presenting a report from the Financial Stability Oversight Council on the state of the economy, he was grilled about British banks' manipulation of the LIBOR interest rate.
Secretary Geithner is expected to tell the committee that the U.S. economy is starting to regain its footing, but still faces threats from uncertainty about government spending and taxes, and instability in Europe.
According to the Financial Times newspaper, four big European banks have joined Barclays in the not-so-prestigious club of financial institutions being investigated for rigging a benchmark lending rate called LIBOR.