Thursday, May 24, 2018
One of America's Great Newspapers ~ Toledo, Ohio



Fannie sues 9 top banks for rigging of LIBOR

WASHINGTON — Fannie Mae filed a lawsuit Thursday against nine major banks alleging the mortgage giant lost hundreds of millions after the banks participated in the rigging of a key global interest rate.

The banks include Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., and others that set the London interbank offered rate, or LIBOR. It is the basis for trillions of dollars in contracts, including mortgages and bonds.

Fannie claims it suffered $800 million in losses from transactions based on the banks’ false submissions of their borrowing costs used to set LIBOR. Four of the banks sued — two British, one Swiss, and one Dutch — have been fined $3.6 billion by U.S. and British regulators for manipulating LIBOR.

Fannie’s smaller sibling, Freddie Mac, filed similar suits against 15 LIBOR-setting banks in March.

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2018 Toledo Blade

To Top

Fetching stories…