BankingFinance

Big Banks Ordered Back to Court for LIBOR Scandal

Sixteen major banks, including JP Morgan Chase, Bank of America, Citigroup, HSBC, Barclays, and Credit Suisse, just received an unfavorable ruling from a U.S. appeals court in Manhattan, reinstating an anti-trust case related to the LIBOR rate-rigging scandal from 2012.

The appeals court decision overturns a 2013 ruling by U.S. District Judge Naomi Reice Buchwald, according to Bloomberg and The Wall Street Journal.

LIBOR (London Interbank Offering Rate) is a daily process overseen by the British Bankers’ Association that establishes the cost of borrowing between banks.

To put the magnitude of the appeals court decision in proper perspective, LIBOR serves as an interest rate benchmark for more than $350 trillion in financial products, from mortgages to credit cards.  Since 2012, the big banks have paid nearly $9 billion in fines in attempts to resolve related investigations.

 

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