FDIC sues 16 big banks that set LIBOR rate


AAPMarch 17, 201410:38am

UBS is one of the banks accused and has already paid a $3.6 billion fine in relation to rate rigging.Source:AP

THE Federal Deposit Insurance Corporation 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, Citigroup and JPMorgan Chase & Co in the US, are among the world's largest.




JPMorgan Chase is also among those accused.

JPMorgan Chase is also among those accused.Source:AFP







The FDIC asserted in its suit that the banks' misconduct in setting LIBOR caused “substantial losses” to the 10 U.S. banks that failed. The amount wasn't specified. The agency is seeking both economic and punitive damages, to be determined by the court.

The other banks named in the suit are Switzerland's Credit Suisse, Germany's Deutsche Bank and Portigon, British banks HSBC and Lloyds, France's Societe Generale, Japan's Norinchukin Bank and Bank of Tokyo-Mitsubishi, and Royal Bank of Canada.

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