Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Citigroup Inc. (C) Gets Subpoena in Libor Scandal

Citigroup Inc. (NYSE:C) apparently may not be completely outside the tangled web of the Libor scandal that ensnared several of its international competitors.  After several other banks have been embroiled in investigations in the United States and United Kingdom, now the tsunami has gotten Citigroup Inc. (NYSE:C), as the company was just given a subpoena to testify about its role in the alleged manipulation of Libor rates.

Citigroup Inc (NYSE:C)

New York State Attorney General Eric Schneiderman and Connecticut AG George Jepsen are conducting a joint criminal investigation of several banks in this case of supposedly manipulating the rate, something that came about upon the admission by Barclays that it had actively engaged in the manipulations of the rate, while led to a $454 million fine for the bank and the resignation of CEO Robert Diamond.

Citigroup Inc. (NYSE:C) says there is no immediate indication whether Citigroup is actually being implicated in the scandal, as it describes the subpoena as about information-gathering. “(Citigroup’s subsidiaries) have received additional requests for information and documents from various U.S. and non-U.S. governmental agencies, including the offices of the New York and Connecticut attorneys general,” the company said in an SEC filing.

The Libor rate is a London-based interest rate that banks charge each other for loans over various periods – from overnight to one year. Many international banks use this rate, which as always been considered a neutral, objective rate that relected the market conditions – until Barclays opened the curtain.

Citigroup Inc. (NYSE:C) is expected to submit its information and testimony to the two state attorneys general’s investigation, which is being watched by a couple other states’ top prosecutors – Florida AG Pam Bondi is “actively reviewing the Libor matter” and has submitted subpoenas, and Massachusetts AG Martha Coakley announced in July that it had opened an investigation of its own and is currently working with other state agencies.

While there is no actual indication that Citigroup (NYSE:C) was actually involved in the Libor manipulation, it will likely be of good interest to see what insight Citigroup might provide to these investigations.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.