Banks Score Court Victory in Libor Suits
Banks embroiled in the LIBOR (London Interbank Offered Rate) interest-rate rigging scandal got a big break on Friday as a federal-court judge ruled they did not breach federal antitrust laws, a judgment that could save the banks sizable sums from private lawsuits seeking billions in damages.
U.S. District Judge Naomi Rice Buchwald ruled that any investor losses caused by rate manipulation were derived from the banks’ “misrepresentation, not from harm to competition.”
To date, Barclays, Royal Bank of Scotland, and AG have shelled out $2.5 billion to U.S. and U.K. regulators.
LIBOR is the benchmark interest rate banks use when getting funds from other banks.