Posted on 03/14/2014 6:25:16 PM PDT by markomalley
The Federal Deposit Insurance Corp. has sued 16 big banks that set a key global interest rate, accusing them of fraud and conspiring to keep the rate low to enrich themselves.
The banks, which include Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. in the U.S., are among the world's largest.
The FDIC says it is seeking to recover losses suffered from the rate manipulation by 10 U.S. banks that failed during the financial crisis and were taken over by the agency. The civil lawsuit was filed Friday in federal court in Manhattan.
The banks rigged the London interbank offered rate, or LIBOR, from August 2007 to at least mid-2011, the FDIC alleged. The LIBOR affects trillions of dollars in contracts around the world, including mortgages, bonds and consumer loans. A British banking trade group sets the LIBOR every morning after the 16 international banks submit estimates of what it costs them to borrow. The FDIC also sued that trade group, the British Bankers' Association.
(Excerpt) Read more at cnsnews.com ...
Civil lawsuit?
Don’t they send these assholes to JAIL anymore? Until the people at these type companies are held PERSONALLY accountable, fines and civil lawsuits for fraud and such will just be regarded as the cost of doing “business”.
If I didn’t know any better, I’d say this has all the appearances of a shakedown.
This is the Obama FDIC. Don't take ANYTHING at face value.
DNC need a new slush fund? I’d put my money on the corrupt banks. (including the Fed) Kabuki.
Yep, cover.
None—— zero, accountability, to be passed on to customers and/or taxpayers.
No accountability for the account ones.
You do know better, and you're right.
Community organizer is a euphemism for shakedown artist.
The banks don’t have to collude to set low rates - the Fed prints money and gives it to them for almost nothing so there is no need to actually PAY real savers for money.
Fine with me. I've got an ARM that's set to the LIBOR plus 2%. Keep it low fellas!
They kept the rate low, so everyone who borrowed money for a mortgage, car loan or other commercial credit paid less interest. Bastards! String them up!
Is that why banks are borrowing so much from the Fed?
Me thinks someone at the FDIC wants to capitalize on the banker suicide trend.
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