Mar 14, 2014
By Michael Kramer
The Royal Bank of Canada is among 16 big banks being sued by The U.S. Federal Deposit Insurance Corporation.
The institutions are accused of rigging a key global interest rate.
The FDIC alleges there was fraud and a conspiracy to keep the rate low -so the banks could enrich themselves.
Also included are Bank of America, Citigroup and JPMorgan Chase.
The FDIC says it wants to recover losses suffered from the rate manipulation by 10 U.S. banks – that failed during the financial crisis – and were taken over by the agency.
It’s alleged the banks rigged the London Interbank Offered Rate, or Libor, from August 2007 to at least mid-2011.
The Libor affects trillions of dollars in contracts around the world, including mortgages,consumer loans and bonds.