The Senate Banking Committee is looking into the allegations that banks manipulated Libor, the London Interbank Offered Rate that is used by financial institutions to set interest rates for financial products, including interest rate swaps entered into by municipal bond issuers.

"I am concerned by the growing allegations of potential widespread manipulation of Libor and similar interbank rates by some financial firms," Senate Banking Committee Chairman Tim Johnson, D-S.D., said in a release. "At my direction the committee staff has begun to schedule bipartisan briefings with relevant parties to learn more about these allegations and related enforcement actions.

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