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Source: USA TODAY 9/24/13
JPMorgan Chase, Barclays, Credit Suisse and 10 other international banks have been sued by a federal credit union regulator on charges they manipulated a financial benchmark used to set rates on trillions of dollars in loans.
The National Credit Union Administration lawsuits charge that the banks conspired to rig Libor, the daily London Interbank Offered Rate that’s used to set the rates on mortgages, car loans, student loans, credit cards and complex financial derivatives contracts.
By keeping the rate artificially low from at least Jan. 2005 through Dec. 2010, the alleged manipulation resulted in improperly low interest income for five failed corporate credit unions now being liquidated by the regulator. They are U.S. Central, Western Corporate, Members United, Southwest Corporate and Constitution Corporate, according to the 72-page complaint filed Monday in Kansas federal court.
Simultaneously, the alleged rate-rigging provided a secret and improper boost to the banks’ own financial trading positions, “allowing them to earn significant undeserved profits,” the complaint charged.
Banks sued for alleged Libor manipulation - National News
JPMorgan Chase, Barclays, Credit Suisse and 10 other international banks have been sued by a federal credit union regulator on charges they manipulated a financial benchmark used to set rates on trillions of dollars in loans.
The National Credit Union Administration lawsuits charge that the banks conspired to rig Libor, the daily London Interbank Offered Rate that’s used to set the rates on mortgages, car loans, student loans, credit cards and complex financial derivatives contracts.
By keeping the rate artificially low from at least Jan. 2005 through Dec. 2010, the alleged manipulation resulted in improperly low interest income for five failed corporate credit unions now being liquidated by the regulator. They are U.S. Central, Western Corporate, Members United, Southwest Corporate and Constitution Corporate, according to the 72-page complaint filed Monday in Kansas federal court.
Simultaneously, the alleged rate-rigging provided a secret and improper boost to the banks’ own financial trading positions, “allowing them to earn significant undeserved profits,” the complaint charged.
Banks sued for alleged Libor manipulation - National News
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