The Federal Deposit Insurance Corporation, as receiver for dozens of failed banks including Washington Mutual and IndyMac Bancorp, has sued 17 large banks, alleging that they manipulated LIBOR – the London interbank offered rate – over approximately a four-year period.
The suit contends that the banks – including Bank of America, Citigroup, Credit Suisse Group, Deutsche Bank, and J.P. Morgan Chase – should be held liable for compensatory and punitive damages.
According to the suit, "[a]s a direct and proximate result of defendants' wrongful conduct as described in this complaint, the closed banks have been injured in their business and property and have suffered damages in an amount presently undetermined."
The FDIC also sued the entity that administered LIBOR at the time, the British Bankers' Association.
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