Freddie Mac Sues Multiple Banks Over Libor Manipulation
http://www.bloomberg.com/news/2013-03-19/freddie-mac-sues-multiple-banks-over-libor-manipulation.html
Freddie Mac (FMCC) sued Bank of America Corp., UBS AG (UBSN), JPMorgan Chase & Co. (JPM) and a dozen other banks over alleged manipulation of the London interbank offered rate, saying the mortgage financier suffered substantial losses as a result of the companies conduct.
Government-owned Freddie Mac accuses the banks of acting collectively to hold down the U.S. dollar Libor to hide their institutions financial problems and boost their profits, according to a complaint filed in federal court in Alexandria, Virginia.
Defendants fraudulent and collusive conduct caused USD LIBOR to be published at rates that were false, dishonest, and artificially low, Richard Leveridge, a lawyer for Freddie Mac, said in the complaint, which was made public yesterday.
Manipulation of interest rates by some of the worlds biggest banks has spawned probes by half a dozen agencies on three continents in what has become the industrys largest and longest-running scandal. More than $300 trillion of loans, mortgages, financial products and contracts are linked to Libor.