USA TODAY: Fannie Mae sued nine major banks Thursday for allegedly causing the mortgage finance giant at least $800 million in losses by rigging a financial benchmark used to set rates on trillions of dollars in mortgages, credit cards, loans and financial derivatives.
Widening an international legal battle over the manipulation, Fannie Mae accused the banks of “pervasive” manipulation of the London Interbank Offered Rate to favor their own trading.
The lawsuit targets U.S. banks JPMorgan Chase, Bank of America and Citigroup, along with global banks Barclays, UBS, Royal Bank of Scotland, Deutsche Bank,Credit Suisse and Rabobank. The action also accused the British Bankers’ Association, which administers Libor… (more)
EDITOR: While meritous, what is missing is the arrest and conviction of bank and corporate officials for fraud. Only that will send a chastening message to the business world. What do the executives care if they earned their big salaries and huge bonuses and later the stock holders have to pay a big fine?
