US Regulator Sues Major Banks Over Libor Manipulation

US Regulator Sues Major Banks Over Libor Manipulation

Via AFP:

The US Federal Deposit Insurance Corporation sued HSBC, Citigroup, Deutsche Bank and 12 other global banking heavyweights on Friday for manipulating the Libor benchmark interest rate.

The manipulation caused "substantial losses" to 38 US banks that were shut down due to insolvency during and after the 2008 financial crisis, according to the FDIC.

The regulator said the accused institutions cheated the closed banks in US dollar-based Libor swaps and other agreements through the manipulation of the rate between 2007 and 2011.

Libor, or the London Interbank Offered Rate, is used as a re...

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