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FDIC sues banks over alleged Libor manipulation



Barclays, HSBC, Citigroup and Royal Bank of Scotland are among 16 banks being sued by the US Federal Deposit Insurance Corporations (FDIC) over allegations of rigging the London interbank offer rate (Libor).

The Libor rate is the interest rate at which banks offer to lend funds to one another in the international market.

The FDIC said the manipulation caused substantial losses to 38 US banks which were shut down during and after the 2008 financial crisis.

The US regulator accuses the banks mentioned in its lawsuit of rigging the rate from August 2007 to at least mid-2011.

Other banks named in the lawsuit include Bank of America, JPMorgan Chase, Deutsche Bank, Lloyds Bank, Credit Suisse, UBS and Rabobank.

Over the past two years, regulators worldwide have been investigating the manipulation of the rate and there have been £2.26bn in fines levied so far.

 

Picture credit: © Roland Nagy | Dreamstime.com
 



Global | Business ethics

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