Libor Accords Leave Banks Facing ‘Massive’ State Claims

Libor Accords Leave Banks Facing ‘Massive’ State Claims


February 9, 2013 by ggita32












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Feb 2013 A multistate probe of alleged manipulation of interest rates
threatens to leave banks liable for billions of dollars in estimated
state and local losses from the scandal, even as they settle with
national regulators. New York Attorney General Eric Schneiderman is
helping lead a probe into claims that banks rigged global benchmarks for
borrowing, adding to investigations by other authorities, including the
U.S. Justice Department. Royal Bank of Scotland Group Plc agreed
yesterday to pay about $612 million to U.S. and U.K. regulators to
resolve their claims. States have joined forces as banks reach
settlements to resolve liability tied to Libor, or the London interbank
offered rate. Barclays Plc in June agreed to pay 290 million pounds
($454 million), and in December, UBS AG agreed to pay 1.4 billion Swiss
francs ($1.5 billion).