FDIC Files Suit against 16 Banks over Alleged LIBOR Rigging

The Federal Deposit Insurance Corporation ("FDIC") filed suit in the U.S. District Court for the Southern District of NY against 16 major banks ("Bank Defendants") for allegedly manipulating the London Interbank Offered Rate ("LIBOR"). In the complaint, the FDIC alleged that the Bank Defendants "fraudulently and collusively suppressed" USD LIBOR during a period beginning from August 2007 until "at least" mid-2011. The complaint also accuses an industry group, the British Bankers' Association, of participating in the alleged scheme. &

The complaint, which was filed by the FDIC as receiver for a group of failed institutions that allegedly suffered "substantial losses" as a result of the Bank Defendants' "systemic LIBOR suppression," seeks unspecified damages.

See: Federal Deposit Insurance Corporation et al. v. Bank of America Corporation et al.