20 banks to face investor lawsuit over interest rate manipulation

Pointing Finger

Mizuho Financial Group and JPMorgan are among about 20 banks and their affiliates that must face an investor lawsuit accusing them of manipulating benchmark interest rates.

Bloomberg reports that U.S. District Judge George Daniels in Manhattan said in a decision yesterday that the investor, who alleges losses from short positions on euroyen Tibor futures contracts, can proceed against all the banks with his claim under the Commodity Exchange Act for price manipulation and aiding and abetting.

The investor, Jeffrey Laydon, who seeks to represent other investors in a group lawsuit, or class action, said in an amended complaint last year that the banks conspired to fix the euroyen Tokyo interbank offered rate and the London interbank offered rate for the yen.

Regulators around the world have been probing whether firms colluded to manipulate interest-rate benchmarks including Libor, which affects more than $300tril of securities worldwide. Financial institutions have paid about $6bn so far to resolve criminal and civil claims in the U.S. and Europe that they manipulated benchmark interest rates.

The probes have have led to fines and settlements for lenders including Royal Bank of Scotland, Barclays, UBS and Rabobank.

To access the complete Bloomberg article hit the link below:

Mizuho, JPMorgan Must Face Interest-Rate Rigging Lawsuit

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