FRANKFURT Jan 28 German financial watchdog
Bafin escalated its investigation into the possible manipulation
of the Euro Interbank Offered Rate (Euribor) last year to
include a special probe at German banks.
"I cannot say how many banks or which banks are involved in
the special probe," a Bafin spokesman said on Monday, adding
however that more than one bank was subject to more intense, on-
site scrutiny by supervisors.
Bafin's investigation into Euribor rate setting has been
under way since mid-2012 and parallels an effort by
international regulators into manipulation of the London
Interbank Offered rate.
Euribor and Libor, which are based on estimates by large
banks of how much they believe they have to pay to borrow from
each other, are used to determine interest rates on trillions of
dollars worth of contracts around the world.
German bank supervisors have been on site at the country's
flagship lender, Deutsche Bank, and Portigon, the
successor bank to former regional state-backed lender WestLB, in
connection with investigations into interest rate manipulation,
sources close to the lenders told Reuters.
Daily Sueddeutsche Zeitung newspaper reported on Monday that
four banks were targets of the special probe, including Deutsche
and Portigon. The paper did not identify the other lenders.
Deutsche and Portigon declined comment.
(Reporting by Jonathan Gould, Edward Taylor, Philipp Halstrick,