Skip to comments.FDIC sues banks over alleged Libor rigging
Posted on 03/14/2014 4:27:39 PM PDT by Drango
Bank of America Corp., Citigroup Inc. and Credit Suisse Group were among 16 of the world's biggest banks sued by the U.S. Federal Deposit Insurance Corp., which alleged manipulation of the London Interbank Offered Rate from 2007 to 2011.
The FDIC, acting as receiver for 38 failed banks including Washington Mutual Bank, IndyMac Bank FSB and Colonial Bank, claimed that institutions sitting on the U.S. dollar Libor panel "fraudulently and collusively suppressed" the U.S. Libor. Also named in the suit, filed Friday in federal court in Manhattan, is the British Bankers Assn., an industry group.
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To lessen the chances that anyone will be held responsible.
In the UK, Guardian Care Homes is suing Barclays for rigging Libor rates. The bank sold GCH interest rate hedges based on rigged Libor rates. The company is seeking £70 million in damages. The trial is expected to continue next month.