Homeowners Sue 12 Banks Over LIBOR Rigging

Posted by Orb Staff on October 15, 2012 No Comments
Categories : Residential Mortgage

Five U.S. homeowners filed a lawsuit in U.S. District Court against 12 banks, charging them with the manipulation of the London Interbank Offered Rate (LIBOR).

According to a Bloomberg News report, the banks being sued include Barclays Bank PLC, JPMorgan Chase & Co., Citigroup Inc., Rabobank International Holdings BV, Credit Suisse Group AG, HSBC Holdings PLC, Lloyds Banking Group Plc, Deutsche Bank AG and Royal Bank of Canada. The plaintiffs say the banks ‘unjustly enriched themselves’ in their LIBOR-related actions, which allegedly allowed them to increase the payments by homeowners on adjustable rate loans.

The plaintiffs are seeking class-action status for the lawsuit, which would include a jury trial and cash compensation if their lawsuit succeeds. This is the first LIBOR-related lawsuit filed by U.S. homeowners.

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