Banks win dismissal of most rate-rigging claims

Published on NewsOK Modified: March 29, 2013 at 6:58 pm •  Published: March 29, 2013
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Cities and municipal agencies in the U.S. have filed a flurry of lawsuits against some of the banks that set the LIBOR. They have sought damages for losses they say they suffered as a result of an artificially low rate, which depressed the value of bonds and other investments pegged to the key interest rate.

Last fall a U.S. watchdog found that government-controlled mortgage giant Freddie Mac and its larger sibling Fannie Mae together may have lost more than $3 billion on their investments from banks' rate-rigging.

Last week Freddie Mac sued JPMorgan Chase, Bank of America, Citigroup and 12 other big international banks in federal court in Alexandria, Va., claiming the lenders rigged the key interest rate, causing the lender to incur huge losses.

Two big British banks and Switzerland's largest have been fined hundreds of millions of dollars for manipulating LIBOR by U.S. and British regulators.

Calls placed to attorneys for plaintiffs in the case were not immediately returned.

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