U.S. regulator sues 16 banks for rigging key interest rate

[steve2470]

Source: Reuters

(Reuters) - The Federal Deposit Insurance Corporation sued 16 of the world's largest banks on Friday, accusing them of colluding to suppress interest rates.

The lawsuit, filed in the federal district court in New York, was the latest to accuse financial institutions of conspiring to manipulate Libor, or the London Interbank Offered Rate.

The FDIC said the defendants' conduct caused substantial losses to 38 banks that the U.S. regulator had taken into receivership since 2008, including Washington Mutual Bank and IndyMac Bank.

"The closed banks' losses flowed directly from, among other things, the harm to competition caused by the fraud and collusion alleged in the complaint," the FDIC said in the lawsuit.

Read more: http://www.reuters.com/article/2014/03/14/us-fdic-libor-idUSBREA2D1KR20140314?feedType=RSS&feedName=topNews&rpc=71&google_editors_picks=true

[pam4water]

1. It would be nice if the FDIC could recover any money it payed out in the bank failures. But

I wont hold my breath.

[truedelphi]

2. Would that make any difference? The Fed would just hand it back over

To the world's biggest bankers.

[pam4water]

3. So true.

[Sunlei]

4. in 20 years they will probably 'settle' for a couple million, leave the banks /w billions in profits

In my dreams everyone who had or with money in those banks, gets a 10% interest payment retroactive.

[Tx4obama]

5. Kick. n/t

[freshwest]

6. Just had to hehehe at that sig line! Good one indeed! n/t

[DiverDave]

7. I wont hold my breath on any

significant penalty's.
They will throw a couple of low level drones that were doing
what they were told to the wolves.
The actual criminals will laugh and have another $50 martini.

This country needs a revolution, like last Tuesday.