Swaps Probe Finds Banks Manipulated Rate at Expense of Retirees

Swaps Probe Finds Banks Manipulated Rate at Expense of Retirees

Ken James/Bloomberg

Companies, pension funds and investment firms from Calpers, the largest U.S. pension, to Newport Beach, California-based Pimco, manager of the world’s biggest mutual fund, use the kind of derivatives at the heart of the ISDAfix probe to hedge against losses or to speculate on interest-rate fluctuations.