FDIC Sues Some of the World’s Largest Banks for Rigging Libor

The Federal Deposit Insurance Corporation sued 16 of the world’s largest banks on Friday, accusing them of conspiring to suppress the London Interbank Offered Rate, known as Libor, Reuters reported.

Among the banks named as defendants include Bank of America Corp (BAC), Barclays PLC (BARC), Citigroup Inc (C), Deutsche Bank (DB), JPMorgan Chase & Co (JPM) and UBS AG (UBS).

Libor is used to set interest rates on such things as credit cards, student loans and mortgages.

The FDIC said the defendants’ conduct caused considerable losses to 38 banks that the U.S. regulator had taken into receivership since 2008.

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