Why FDIC Is Suing BofA, Citigroup, Credit Suisse

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

March 14 (Bloomberg) -- Bank of America, Citigroup and Credit Suisse Group were among more than a dozen banks sued by the U.S. Federal Deposit Insurance Corp. for allegedly manipulating the London Interbank Offered Rate from 2007 to 2011. Peter Cook has more on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Over the last couple of years ever since the first allegations of manipulation of this benchmark lending rate in 2008. you have had to traders who have been fired or put on leave.

You had investigations in the u.s. and abroad over the interbank scandal.

Now you have the fdic filing a lawsuit in federal court in new york that accuses more than a dozen banks of manipulating libor.

They are alleging that that meant oblation -- manipulation -- they are seeking to recover losses suffered by those close banks.

The fdic took those banks over and is trying to get this money back by suing these banks.

A lot of these banks -- very big names here.

More than a dozen banks that includes bank of america, deutsche bank -- some of these banks have had to deal with investigations already.

In this complaint, it says here, "in the absence of inclusion, the panel bank defended the banks involved here.

The banks that helped set thelibo libor could not have set the rates." suggesting the manipulation of this rate led to the closure of these banks here in the u.s. what is significant here is that there have been all these investigations and we have not heard that much from the fdic on this front.

This lawsuit comes as a surprise to some.

Now the banks will have to take on the federal government in court.

The fdic asking for punitive -- the libor rate affects everything.

This is a global benchmark.

If you think it doesn't affect you, you are mistaken.

It sets everything from a mortgage rate to a car loan rate.

That is why this is such a big deal when it was first uncovered back in 2008. why this has been a spiraling investigation, not just here in the u.s. but abroad.

In asia as well.

This is more fallout from this investigation.

Probably not the last.

Thank you.

Coming up, with rising military conflicts abroad, the pentagon is landing drastic cuts to the

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change