(Reuters) – A US appellate court on Thursday revived lawsuits accusing a number of major banks of conspiring to rig the Libor interest rate benchmark, including during the 2008 financial crisis, to increase profits at the expense of investors and make banks visible. healthier than they were.
The second U.S. Court of Appeals in Manhattan said a lower court judge had jurisdiction over antitrust claims from investors including Charles Schwab Corp. who bought various Libor-based products from the banks, or bought Libor-based futures on the Chicago Mercantile Exchange. during a conspiracy-based theory of liability.
] The Court of Appeals adopted that theory after U.S. District Judge Naomi Reice Buchwald in Manhattan dismissed investors' claims in 23 separate cases from t. a decade-old lawsuit.
Thursday's 43-sided decision A panel of three judges revived many of these allegations, and the Court of Appeal returned these cases to Judge Buchwald for further proceedings.
The responding banks sat on a panel. involved in setting up Libor.
They included Bank of America, Bank of Tokyo-Mitsubishi UFJ, Barclays, Citigroup, Credit Suisse, Deutsche Bank, HSBC, JPMorgan Chase, Lloyds Banking Group, NatWest, Norinchukin Bank, Rabobank, Royal Bank of Canada, Societe Generale, UBS and WestLB.
Lawyers representing the banks and investors at the oral arguments, held in May 201
Libor, or the London Interbank Offered Rate, has supported hundreds of trillions of dollars in transactions, including $ 265 trillion in early 2021.
It has been used to set interest rates on such things as credit cards, student loans and mortgages.
The reference value is creature scrapped January 1, 2022, in the tracks of interest rate fraud which led to fines for several banks.
It will be replaced by alternative interest rates, preferably those recommended by several banks and based on actual transactions.
case is I re Libor-Based Financial Instruments Antitrust Litigation 2nd US Circuit Court of Appeals.