FDIC Sues 16 Mega-Banks and British Banks’ Association Over LIBOR Interest-Rate Rigging

On Friday the Federal Deposit Insurance Corporation filed suit against 16 of the world’s mega-banks, and against the British Banks’ Association, for colluding to rig the interest-rate-reference figure, the Libor (London Interbank Offered Rate).

This action follows many other lawsuits against Wall Street banks for Libor-rigging, filed over the last 50 months by municipalities and other entities looted by the mega-banks through Libor-based interest rate swaps and other scams.

The pattern and evidence of fraud are overwhelming, which only shows the necessity to stop the whole game, by re-instating the Glass-Steagall Act in the United States. Legislation is ready and waiting in Congress.

The new FDIC lawsuit, filed in the Federal District of New York, charges that the conduct of the accused entities caused significant losses to 38 banks that the FDIC had to take into receivership since 2008. This list of stricken banks includes Washington Mutual and IndyMac Bank. The particular charge is that the defendants colluded to suppress interest rates, to their advantage and to the detriment of targetted entities.

The roster of banks named as defendants includes the foremost banks of the Trans-Atlantic economic dead zone: Bank of America, Barclays, Citigroup Inc., JPMorgan Chase & Co., Credit Suisse Group, Deutsche Bank, HSBC Holdings, UBS and Royal Bank of Scotland.

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