The Federal Housing Finance Agency (FHFA) released a statement saying it has not “made any determination regarding legal action” in relation to the LIBOR scandal, which has been shaking up the banking world for months.
The Wall Street Journal reported that Fannie Mae and Freddie Mac could have lost well over $3 billion because of banks’ possible manipulation of interest rates as part of the scandal.
The FHFA released a statement saying, “it has not substantiated any particular LIBOR-related losses for Fannie Mae and Freddie Mac. We continue to evaluate issues associated with LIBOR and monitor LIBOR-related developments, recognizing that other Federal agencies are also involved in related matters. FHFA has not made any determination regarding legal action.”
A consortium of homeowners recently filed suit against Bank of America (BAC) Barclays, JPMorgan (JPM) and several other international banks, claiming the financial firms manipulated LIBOR rates that determine the interest rates homeowners pay on adjustable-rate mortgages.
