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Bank of America, Citi, UBS at Center of Agency Probe into LI

Financial News Network
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March 18, 2011 AT 10:17 AM
The Securities and Exchange Commission and the Justice Department have focused an investigation into possible manipulation of the London interbank offered rate, or LIBOR, on three banks, Bank of America Corp. (BAC), Citigroup (C), and UBS (UBS), according to a report in the Wall Street Journal Thursday, citing unnamed sources. Most financial shares are swept up in a Wall Street rebound Thursday. BAC is up 1.2%, C is up 0.6% and UBS is up 1.6% in pre-market trading. Libor, published daily by the British Bankers Association, is a closely watched measure of bank funding costs and is used to price mortgages and other loans in the U.S. and elsewhere. The agencies are looking into whether some banks intentionally tried to hide rises in their funding costs by submitting inaccurate data to the association during 2006 through 2008, government and industry officials say, according to the WSJ.