Thirty state attorneys general are investigating alleged interest-rate rigging by banks that set Libor, and the probe is not slowing despite a U.S. judge's ruling last week in favor of the banks in private lawsuits, the Wall Street Journal reported today. The number of states involved in the coordinated probe has grown substantially in recent months and could result in enforcement actions seeking billions of dollars in damages. New York and Connecticut are leading the investigation, which has widened to include Arizona, Delaware, Iowa and Maryland. It is not clear when the probe will be completed or which banks could be most vulnerable. But state officials are plowing ahead even though the judge threw out proposed class-action lawsuits and suits filed by Charles Schwab Corp. alleging wrongdoing by banks related to the London interbank offered rate and other interest-rate benchmarks.
