Baltimore City a Party in Interest Rate Manipulation Lawsuit

The City of Baltimore is one of many plaintiffs in multiple lawsuits alleging that banks colluded to manipulate benchmark interest rates.  From the Chicago Tribune:

Competing lawsuits could drive up the legal costs for the banks, which are accused of colluding to manipulate the global benchmark Libor rate that sets prices on $350 trillion of derivatives and other financial products.

More than a dozen banks, including Citigroup, HSBC and UBS, have been caught up in the probe and have been sued in proposed class-actions by plaintiffs including the city of Baltimore and Frankfurt-based Metzler Investment GmbH, which manages 47 billion euros ($59 billion) in assets. The plaintiffs brought antitrust claims against the banks, saying they were bilked of potentially billions of dollars.

Barclays PLC is the first bank to settle the investigation, which resulted in the payment of $453 million to U.S. and British authorities and the resignation of the bank’s chairman, chief executive officer and chief operating officer.

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