Global Lenders Accused in Suit of Helping Sink Doral Bank
- FDIC, Doral’s bankruptcy receiver, sued 16 banks in New York
- Banks already paid billions of dollars in fines over Libor
Doral Financial headquarters in San Juan, Puerto Rico.
Photographer: Dennis M. Rivera/New York Times via Redux
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The U.S. agency responsible for insuring bank deposits sued more than a dozen of the world’s biggest lenders, accusing them of contributing to the collapse of Puerto Rico’s Doral Bank by manipulating the benchmark Libor interest rate.
The collapse of San Juan-based Doral was the biggest U.S. bank failure of 2015. The Federal Deposit Insurance Corp., its receiver in bankruptcy court, is seeking unspecified economic and punitive damages from 16 lenders, including Bank of America Corp., Barclays Plc and Credit Suisse Group AG.