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RBC Among 16 Banks Sued By U.S. Over Rigging Of Key Interest Rate


RBC Among 16 Banks Sued By U.S. Over Rigging Of Key Interest Rate.

 

WASHINGTON (AP) — The U.S. Federal Deposit Insurance Corp. is suing 16 big banks, including the Royal Bank of Canada (TSX:RY), for alleged rigging of a key global interest rate.

The FDIC accuses them of fraud and conspiring to keep the rate low to enrich themselves.

The banks, which also include Bank of America, Citigroup and JPMorgan Chase in the U.S., are among the world’s largest.

The FDIC says it is seeking to recover losses suffered from the rate manipulation by 10 U.S. banks that failed during the financial crisis and were taken over by the agency.

The civil lawsuit was filed Friday in federal court in Manhattan.

The banks rigged the London interbank offered rate, or Libor, from August 2007 to at least mid-2011, the FDIC alleged. The Libor affects trillions of dollars in contracts around the world, including mortgages, bonds and consumer loans.

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1 Comment

  1. My comment:
    Nothing surprising here at all. Every financial ‘market’ is rigged and manipulated: currency, precious metals, equities, interest rates. My guess is that very few, if any, individuals will be prosecuted; the various institutions will pay some ‘symbolic’ fines (just as JP Morgan has done, $13 Billion fine for subprime mortgage fraud) and continue with their malfeasance. When things go backwards, our governments will bail them out again, passing the losses onto the taxpayers (privatisation of profits and socialisation of losses). Just look at the latest banking-sector, CEO salaries and bonuses.
    That’s what happens in a giant Ponzi scheme, which is what our entire ‘wealth’ system has become. There is much, much more going on here than our corporate media will ever report on…

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