Fannie Mae sues 9 leading world banks over $800mn loss from Libor rigging — RT Business

Fannie Mae sues 9 leading world banks over $800mn loss from Libor rigging — RT Business:

"US mortgage agency Fannie Mae has filed a lawsuit against nine of world’s biggest banks, citing $800 million in losses it claims came from the manipulation of the key interbank rate - Libor.

The lawsuit filed at the District Court of Manhattan is against Bank of America, Barclays, Citigroup, Credit Suisse Group, Deutsche Bank AG, JPMorgan Chase & Co, Rabobank, Royal Bank of Scotland and UBS AG, claiming they artificially lowered the rate from 2007 to 2010, the Washington Post reported.

In the filing Fannie Mae said it lost about $800 million on “swaps, mortgages, mortgage-backed securities and other variable rate transactions” tied to Libor.

The London Interbank Offered Rate (Libor) serves as a standard interest rate for loans between banks and is a benchmark for the estimated $360 trillion in lending to businesses and consumers."

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