British Officials Announce Fraud Investigation Into Rate Manipulation - New York Times (blog)

British officials confirmed on Friday that they would pursue a fraud investigation into the manipulation of benchmark interest rates, a process that could result in criminal charges.

The Serious Fraud Office said earlier this week that it was considering whether to bring criminal charges in the matter, which involves traders at Barclays who were found to have been trying to manipulate rates for their own benefit. The time-frame for any potential criminal prosecutors is unclear.

The agency's director, David Green, decided "formally to accept" an investigation into the rigging of the London interbank offered rate, or Libor, its statement said.

The announcement comes as the Financial Services Authority, Britain's securities regulator, is continuing its own investigation that may lead to a civil case. United State authorities may also pursue cases against some of the individuals involved.

Officials in Britain and the United States announced a $450 million settlement with Barclays last week, and top officials of the bank, including the bank's chief executive, Robert E. Diamond Jr., resigned days later. Mr. Diamond testified this week before a British parliamentary committee, and put some of the blame for the rate manipulation scandal on authorities, who the bank says were repeatedly told about the issue, but did not move to stop it.

Investigations across multiple jurisdictions are focusing on more than 10 large financial institutions, including JPMorgan Chase, UBS and Citigroup.