Italian police 'seize Barclays documents in Euribor probe'

By Telegraph staff and agencies

The search was ordered by prosecutors in the southern city of Trani, who have opened a criminal probe into the possible Euribor manipulation following complaints filed by two consumer groups, Adusbef and Federconsumatori, two judicial sources told Reuters.

In a joint statement, the consumer groups said documents, computer material and emails were seized at Barclays Milan offices last week, "with the aim of looking for evidence that Barclays also manipulated Euribor, as it did with Libor, with a negative impact on mortgage rates paid by Italians".

Italian prosecutor Michele Ruggiero is investigating whether "just as it did with Libor, Barclays manipulated Euribor, with negative consequences on mortgage rates paid by Italians", the statement said.

The Libor scandal has so far cost Barclays £290m in fines and three executives, after chairman Marcus Agius, chief executive Bob Diamondand chief operating offer Jerry del Missier all resigned.

It was revealed on Monday that bankers found to have rigged the interbank lending rate could face jail after the Serious Fraud Office said it will look to bring criminal charges against those who attempted to manipulate Libor.

Martin Wheatley, head of financial conduct at the Financial Services Authority, has launched a review into the Libor-setting process that could lead to it being regulated by the authorities.

Barclays declined to comment.