Senators call on Obama administration, top regulators to look into Libor manipulation

by Vicki Needham - 07/12/12 10:16 PM ET

The letter sent to Holder and members of the Financial Stability Oversight Council (FSOC) asks for a thorough, independent investigation into the manipulation scandal and for full criminal prosecution and civil action of any banks and their employees that are found to have broken the law.

“Restoring integrity to our financial system is critical to restoring confidence in our economy,” they wrote.

They also expressed concern over allegations that U.S. and foreign bank regulators may have been aware of this wrongdoing for years.

“Just like the banks and executives they oversee, regulators who were involved should be held to account for any failures to stop wrongdoing that they knew, or should have known about,” they wrote.

The lawmakers also are calling for an assessment of the current Libor process, to detail areas where abuse has or could occur.

The issue is likely to come up next week when Federal Reserve Chairman Ben Bernanke heads to Capitol Hill for hearings before Senate Banking and House Financial Services.

Those signing the letter include: Sens. Jack Reed (D-R.I.), Carl Levin (D-Mich.), Dianne Feinstein (D-Calif.), Tom Harkin (D-Iowa), Patrick Leahy (D-Vt.), Robert Menendez (D-N.J.) Sherrod Brown (D-Ohio), Jeff Merkley (D-Ore.), Sheldon Whitehouse (D-RI), Frank Lautenberg (D-NJ), Daniel Akaka (D-Hawaii), and Jeanne Shaheen (D-N.H.).

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