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The Royal Bank of Canada (RY-T) is one of nine world banks reportedly under investigation for alleged manipulation of the Libor benchmark lending rate.
Attorney Generals in both New York and Connecticut have sent subpoenas to the lenders in August and September, according to media reports.
“We are cooperating with regulators...we have determined that our LIBOR submissions reflected our cost of funds,” an RBC spokesperson tells BNN.
The ongoing rate-rigging probe led by regulators in the U.S. and U.K. has already ensnared major banks like Britain's Royal Bank of Scotland, Bank of America and Switzerland's UBS. Barclays, the first bank to settle charges, lost its chief executive over the scandal.
Libor is the benchmark used to determine the interest rate on contracts and loans from around the world worth as much as $300 trillion.With files from Reuters