BofA, Others Face Suit Over Libor-Tied Mortgage Plot

Law360, New York (October 15, 2012, 5:42 PM EDT) -- Bank of America Corp. and a host of other financial giants have been hit with a putative antitrust class action in New York federal court alleging a conspiracy to manipulate Libor and get higher mortgage-backed security yields that drove up homeowners' mortgage interest rates.

The suit, filed Oct 4. by five Alabama-based homeowners, alleges the collusive manipulation of Libor — a benchmark set by certain banks based on their estimated borrowing costs and used to set interest rates for borrowing between banks — between 2000 and...
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