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Bloomberg News reported that employees had been manipulating the rate by pushing through client trades before and during 60-second windows when the benchmarks are set.
ASIC has been investigating major banks over the integrity of their past bank bill swap rate (BBSW) submissions since 2012, suspecting traders of manipulating the rate to make more money.
It said Lloyds had acted to benefit its trading positions and protect its reputation by manipulating the rate when it was in the process of buying HBOS during the crisis.
Manipulating the number of operands allowed us to investigate the specific effect of calculation, while manipulating the rate of presentation allowed us to increase task difficulty independent of calculation.
Barclays has admitted to manipulating the rate for years, paying $450 million in penalties.
Libor's credibility was severely damaged during the 2007-2009 financrisisrisis as some of the banks contributing to its daily fixings were accused of manipulating the rate.
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There was no evidence that the scheme was organized; drivers seemed to be independently manipulating the rates, Mr. Yassky said.
The source, who did not want to be identified because the investigation is ongoing, said regulators are checking through emails among a group of traders and believe they are now close to piecing together a picture of how they allegedly conspired to make money by manipulating the rates.
"Banks that manipulate the rate deserve, absolutely, to be fined," he said.
The review will focus on potential criminal sanctions against individuals who manipulate the rate.
Regulators may also make it a criminal offense to manipulate the rate.
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