LIBOR Conspiracy? Canada Says No

 Canada’s Competition Bureau has discontinued its investigation of alleged collusive conduct into the setting of Yen LIBOR rates and their use in pricing interest rate derivative products.

The Bureau said that its investigation – which it began in early 2011 – did not find sufficient evidence to justify prosecution under the applicable criminal conspiracy provision of Canada’s Competition Act, which required proof of significant anti-competitive economic effects.

The Bureau said that it had “coordinated its investigation with enforcement agencies in numerous jurisdictions,” and then conceded that conduct that did not constitute an offense in Canada “may constitute” an offense in other jurisdictions.

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