Billion Claim Libor affair gets top banks

- Sixteen banks including Rabobank can still expect billions in damages in the case around manipulation of the Libor rate. A US judge allows private parties yet to sue the banks. That may mean that they fall over, the judge realizes.

This statement reports the Wall Street Journal. Many banks thought to be on the Libor affair, they bought off persecution. Rabobank also paid hundreds of millions after it emerged that his traders were guilty of manipultatie this crucial interest, widely used in foreign exchange and derivatives transactions.

But according to this ruling individuals and investment funds may independently of these settlements with the US Department of Justice in the United States still submit claims for damages.
  
    
     
      
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The judge proposed to be aware of the consequences of the ruling.,, Requirements to banks that they have to pay triple damages to each plaintiff who is affected should a derivatives swap, as in legal proceedings plaintiffs allegations were proven, sixteen of the world's leading institutes to make bankruptcy. The ruling would also increase the potential scope of liability in anti rival business in numerous markets where derivatives are used, 'said the judge's ruling in New York Monday.

Deutsche Bank, Barclays, RBS and UBS paid billions in fines. They participated in the so-called Libor panel, with the interbank rate was manipulated. The Libor stands for London interbank offered rate and calculated per transaction. Cities like Baltimore, San Francisco and Houston to see money in separate lawsuits.

2013 Rabobank paid a total of € 774 million in settlements and surrender values ​​to Dutch, British and US authorities for the involvement of a number of bankers at the extensive Libor scam.
  
  
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The banks, according to the Wall Street Journal after the court ruling also in civil cases can be sued are: Bank of America, Bank of Tokyo-Mitsubishi, Citigroup, Credit Suisse, HSBC, JP Morgan Chase, Norinchukin Bank, Portigon AG / Westdeutsche Immobilien AG, Lloyds Banking, Royal Bank of Canada and Société Générale.

Many traders pleaded guilty to fraud with the excessively high interest rates they figured to customers. These IOUs are now fodder for lawyers who will argue that the bank leadership was aware of manipulation.

The statement called the Court of Appeals for the Second Circuit deletes the previous ruling of the lower US court in 2013. At the time, all claims were stopped by Judge Naomi Buchwald.

The alleged violations of the banks, says Buchwald, was not in violation of federal competition laws. The complainants, who had different types of investments for which the libor rate applies, had shown insufficient Buchwald claimed that their interests were harmed.

In appealed the Court of Appeals on Monday that the complainants are within their rights. Their case they,, say they got an artificially higher frozen prices 'for choose, may be resubmitted to the courts. The Court of Appeals should re-hear the case. They have to prove that suffered their investments under the artificially high keep the Libor rate.