US government files $400bn Libor case lawsuit in London court

Here’s a refresher on the massive Libor scandal.

(From The International Business Times)

According to documents filed at the High Court last month, Barclays, Deutsche Bank, UBS, Royal Bank of Scotland and Lloyds Banking Group are among the banks sued by the FDIC, which oversees the winding down of failing banks.

The corporation has also sued the British Bankers’ Association (BBA) – now part of industry lobby group UK finance – accusing it of colluding with a number of lenders to carry out the “sustained and material suppression of Libor between August 2007 until at least the end of 2009″.

The FDIC said it has brought the lawsuit on behalf of 39 US banks it had to rescue in the wake of the financial crisis, adding the lenders unfairly lost out as the US-dollar denominated variant of LIbor was rigged.

According to separate reports by The Times and the Financial Times, while the corporation has not put a figure to its claim it has stated the banks it represented were worth a combined $440bn and produced a combined turnover of over $114bn by the end of 2007.

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