Bloomberg reported that Fannie Mae sued nine banks alleging their manipulation of the benchmark LIBOR rate, which four of them have admitted, cost the mortgage-financing company about $800 million.
Bloomberg said, according to a complaint filed in a federal court, FNMA alleges the banks acted to suppress the rate though quotes they submitted to the British Bankers Association.
Global authorities have been investigating claims that more than a dozen banks altered submissions used to set benchmarks such as Libor to profit from bets on interest-rate derivatives or to make the lenders’ finances appear healthier, Bloomberg notes.
To read the Bloomberg story click here.
Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!
No tags available