US authorities to quiz British banks on Libor scandal

The rate-rigging scandal that has rocked the banking industry showed no signs of abating as US authorities summoned three British banks for questioning.

Royal Bank of Scotland, HSBC and Barclays were among seven banks handed legal notices demanding they assist in an inquiry by the attorneys general of New York and Connecticut.

The move raises fears over future penalties and further damage to the already battered reputation of Britain’s banks, with several other legal cases in multiple countries looking at the manipulation of Libor.