Big Banks Sued Over Libor Manipulation

Law360, New York (April 19, 2011, 8:27 PM EDT) -- An investor in London Interbank Offered Rate-indexed securities filed a class action against Bank of America Corp., UBS AG and other major banks Tuesday in Illinois, claiming they cost the market billions by manipulating the Libor to hide their weaknesses.

Sixteen big banks indirectly set the Libor by reporting what interest rate they thought they would get if they borrowed money from other banks. Fearful that the market would see how fragile their positions were during the financial crisis if they told the truth about their...
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