FDIC Sues Major Banks For Alleged Libor Rigging

The recent lawsuit from the FDIC is the latest skirmish in a global investigation into Libor, which is used in setting rates on $800 trillion of loans and securities. The Federal Deposit Insurance Corporation said the defendants’ conduct caused substantial losses to 38 banks that the U.S. regulator had taken into receivership since 2008. Libor rigging Libor, or the London Interbank Offered Rate, is a global benchmark that is calculated daily, using estimates from banks of their own interbank rates. The Libor scandal erupted a couple of years ago when Barclays was fined £290 million by British and US regulators…