Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • SECURE 2.0
    • Special Reports
    • Washington
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Canadian Pension Risk Strategies
    • 2023 Retirement Income
Breadcrumb
  1. Home
  2. COURTS
July 16, 2012 01:00 AM

LIBOR manipulation losses investigated by 3 states

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Attorneys general in at least three states are conducting investigations tied to alleged manipulation of the London Interbank Offered Rate, adding to probes by U.S. and U.K. authorities.

    New York Attorney General Eric Schneiderman and George Jepsen in Connecticut are working together, according to both offices. In Massachusetts, Attorney General Martha Coakley is also investigating, according to her office.

    “The New York and Connecticut attorneys general have been looking into these issues for over six months, and will continue to follow the facts wherever they lead,” a spokesman for Mr. Schneiderman, James Freedland, said Sunday in an e-mail.

    Barclays, Britain's second-biggest bank by assets, last month was fined £290 million ($453 million) for submitting false rates for LIBOR, a benchmark interest rate for financial products valued at $360 trillion. Royal Bank of Scotland Group, UBS, Lloyds Banking Group and Deutsche Bank are among lenders facing inquiries over alleged rigging of LIBOR.

    Barclays traders who allegedly manipulated rates from 2005 to 2007 may be charged by U.S. prosecutors before Labor Day, according to a person familiar with the Justice Department's investigation. The scandal led to the resignation of Robert Diamond as the bank's CEO.

    New York and Connecticut are investigating whether the states incurred losses as the result of manipulation, according to Mr. Schneiderman's office. Jaclyn Falkowski, a spokeswoman for Mr. Jepsen, said the states are investigating “with the goal of providing restitution to state agencies, municipalities, school districts and not-for-profit entities nationwide that may have been harmed by any illegal conduct.”

    Massachusetts is looking into the effect on state investments and working with state agencies, said Brad Puffer, a spokesman for Ms. Coakley.

    “We are currently investigating the serious allegations around the manipulation of the LIBOR and working diligently to determine what, if any, impact it may have on Massachusetts investments,” he said in an e-mailed statement.

    Declines in interest rates have left state and municipal governments that sold debt with variable rates mired in swaps they can't afford to unwind because of high penalty rates.

    The penalties are tied to LIBOR and other indexes that have fallen to near historic lows since the financial crisis that began in 2007, forcing at least $4 billion of payments to end the agreements, according to data compiled by Bloomberg.

    Other borrowers stayed in swaps because they haven't been willing or able to pay the cost of unwinding them. The city of Baltimore and the New Britain Firefighters' and Police Benefit Fund in Connecticut consolidated and amended a complaint against Citigroup, Credit Suisse, Bank of America and other banks alleging they artificially suppressed LIBOR, according to documents in U.S. District Court in Manhattan.

    Related Articles
    Barclays turmoil tip of iceberg
    New York Fed knew Barclays underreported LIBOR in 2008
    BlackRock, Fidelity, Vanguard weighing LIBOR action against banks
    Chicago Teachers pension fund to study losses from LIBOR scandal
    Recommended for You
    ScalesofJusticeGavel-main_i.jpg
    TSP board, Accenture, Alight hit with lawsuit over rocky transition to new system
    SVB_Bank_1550_i.jpg
    Norges Bank Investment Management wants lead-plaintiff status in SVB suit
    gavel_scales_lawbook_1550-main_i.jpg
    Judge allows Knight-Swift 401(k) lawsuit to proceed
    ESG: Seeking Alignment with Climate Change
    Sponsored Content: ESG: Seeking Alignment with Climate Change

    Reader Poll

    May 1, 2023
     
    SEE MORE POLLS >
    Sponsored
    White Papers
    Middle market credit: We’re gonna need a bigger boat
    Alternative Credit: Differences and Opportunities in CLOs and Credit Risk Shari…
    Fixed Income is Attractive, but Beware of "Fake" Yield
    Counting on a Crisis: A Catalyst for Investment Innovation?
    A Strategic Allocator's Guide to Productivity and Profits
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • SECURE 2.0
      • Special Reports
      • Washington
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Canadian Pension Risk Strategies
      • 2023 Retirement Income