German regulator looking at banks over interbank rates

Germany's banking regulator said Thursday it is looking at several banks to ensure they have effective controls in place to prevent interbank the attempted rate rigging that has tripped up British bank Barclays. "We are verifying if the banks have adequate control mechanisms to discover or prevent such market manipulations," a BaFin spokesman told AFP. Last week Barclays Bank became the first bank to be fined as part of an international probe into suspected manipulation of key markets for Libor and Euribor interest rates, paying £290 million ($450 million) to US and British authorities. The spokesman said BaFin was in contact with US and British counterparts but noted that it does not have similar powers to pursue criminal investigations. To BaFin's knowledge no German prosecutor has opened a probe, added the spokesman. In Germany, Deutsche Bank mentioned in April in its first quarter report that it had received requests for information as part of US and European probes into possible manipulation of the Libor and Eurobor interbank rates. The Euribor reference rate is set by 43 eurozone banks, including Barclays, while the Libor rate is preferred by institutions from English-speaking countries. In addition to serving in the interbank market the rates are widely used as a reference for rates in transactions by businesses and individuals.