How banks could have Libor cases dismissed

Author: | Published: 24 Jul 2012

Class action law suits filed in US courts claim international banks colluded at the expense of investors, community banks, municipalities and investment funds. But banks are not without ammunition of their own.

Some of the class action antitrust suits include claims on different investment products against banks that didn’t directly sell the assets to plaintiff investors. This might give banks an angle to have cases dismissed.

A $200 million US Commodity Futures Trading Commission (CFTC) order against Barclays for attempted manipulation and false reporting of the London Interbank Offered Rate (Libor) and Euribor, a similar benchmark for the eurozone, on June 27 was a catalyst for US antitrust litigation.

The CFTC said that Barclays’ traders attempted to manipulate Libor and Euribor and submitted false reports on the interbank lending rates in collusion with other banks.

A July 6 class action suit...


 

 

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