In 2012, Swiss bank UBS AG paid $1.5 billion for manipulating benchmark London interbank offered rate, or Libor. In September 2013, brokerage firm ICAP paid penalties of nearly $90 million for their own Libor manipulations. Will major U.S. banks be the next to feel the Libor manipulation wrath?
Officials at mortgage giant Fannie Mae hope so. Fannie Mae has filed suit against nine banks, including Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc., alleging that the banks’ manipulation of Libor rates coast Fannie Mae about $800 million.