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March 20, 2013

Freddie Mac Sues Banks for Libor Losses 
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The mortgage giant Freddie Mac has filed suit against more than a dozen
banks for losses stemming from the manipulation of the global interest
rate Libor. The rigging of Libor altered the benchmark for rates on
trillions of dollars in transactions across the globe, meaning millions
of borrowers paid the wrong amount on their loans. Along with Fannie
Mae, Freddie Mac's losses from the Libor scandal could top more than $3
billion. Freddie Mac's suit targets banks including Bank of America,
JPMorgan Chase and Credit Suisse. The lawsuit accuses the firms of
fixing Libor "to hide their financial problems and to boost their
profits."

 

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