The European Commission wasn't taking prisoners this week when it seized documents from several major banks, as global regulators and law enforcement agencies ramped up their investigations into interest rate manipulation. In the latest case, European officials are investigating the Euro Interbank Offered Rate, or Euribor, an interest rate that's set by more than 40 banks.  It's a benchmark used to determine interest rates on trillions of euros worth of euro-denominated loans and debt instruments. The Euribor probe is an offshoot of a broader, year-old investigation by prosecutors and regulators in the U.S., Europe and Japan.  That investigation centers on whether banks colluded to manipulate the more widely-used Libor, or London interbank offered rate.  Libor influences the cost of trillions of dollars in loans and derivatives. Euribor rate-setting panel. Some the biggest banks in Europe sit on this panel and it's presumed that most, if not all were hit.  A list of financial firms raided this week by the European Commission, which is the executive branch of the European Union, had not been made available. It's understood that, among the targets, were a large French bank and a large German bank.  Coordinated raids occurred in London and other European cities, informed persons said. A spokesperson for the European Commission declined to comment, but an executive at one bank in London where regulators showed up, said "It was more of a visit than a raid."  [C-I Note: Like a wolf in a sheep's covering.]  The officials asked for information and were escorted inside. Empowerment. European Commission officials have the power to enter buildings and seize documents in investigations of suspected abuse-of-competition laws.  The surprise visits, known as dawn raids, are likely part of an effort by European officials to better understand the mechanics of Euribor, according to people familiar with the matter. Cedric Quemener, the manager of Euribor EBF, the group in Brussels that manages the Euribor interest rate, said he isn't worried about the investigation because Euribor is based on information collected from so many banks. That makes the benchmark interest rate harder to manipulate than Libor, which is set by 15 banks, he noted. "I'm not fearing it," Mr. Quemener said Tuesday, referring to the European investigation. Global Libor Probe. However, as part of the global Libor probe, U.S. officials have issued subpoenas to a number of banks.  The investigation is a joint effort by the Justice Department and civil regulators;  investors have filed about 20 lawsuits related to alleged interest-rate manipulation, which the banks are fighting.  Japanese officials are examining the rate-setting process for the Tokyo interbank offered rate, or Tibor.   [Reuters, through the WSJournal, 10/19/11]]