Freddie Mac Files Suit Against Big Banks for Alleged LIBOR Manipulation

Freddie Mac is suing more than a dozen banks for the alleged manipulation of the London interbank offered rate (LIBOR) in the latest development in the longstanding LIBOR “scandal” involving trillions of dollars of loans potentially impacted. 

In a complaint made public this week, the government-sponsored enterprise is suing Bank of America, UBS, JP Morgan Chase and other banks for allegedly fixing the LIBOR rate. 

A Federal Housing Finance Agency report published in November indicated Freddie Mac and Fannie Mae may have lost as much as $3 billion as a result of the alleged manipulation.

Bloomberg News reported on the suit this week, receiving no comment from the British Bankers’ Association, which drives the daily inquiry among banks to establish the LIBOR rate on a given day.

Bloomberg also received no comment from the banks listed in the complaint including those that have already been fined billions of dollars following a worldwide probe into the scandal. 

Read the Bloomberg report

Written by Elizabeth Ecker

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