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  Berkshire Bank Sues Barclays, Citigroup Over Alleged Libor FraudJul 30, 2012 4:57 PMSCCE Social Media Manager
 

Berkshire Bank Sues Barclays, Citigroup Over Alleged Libor Fraud
From: SCCE Social Media Manager
To: Multi-Industry Chief Compliance and Ethics Officers
Posted: Jul 30, 2012 4:57 PM
Subject: Berkshire Bank Sues Barclays, Citigroup Over Alleged Libor Fraud
Message:
This message has been cross posted to the following eGroups: Financial Compliance and Multi-Industry Chief Compliance and Ethics Officers .
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By Joe Schneider, Bloomberg Businessweek

The Berkshire Bank, a New York lender with 11 branches, sued 21 banks including Bank of America Corp., Barclays and Citigroup Inc. for damages over the alleged manipulation of the London interbank offered rate. Berkshire sought undisclosed compensation and punitive damages and the right to represent other lenders in a group lawsuit, or a class action, in a July 25 filing in federal court in Manhattan. The lender claims in the suit that Libor fraud lowered interest payments it received.

Libor is the most widely used benchmark for setting values on about $360 trillion in financial products, with the rate being fixed each morning by the British Bankers' Association. Confidence in Libor has been shaken by Barclays's admission that it submitted false rates. Robert Diamond, who resigned as London-based Barclays's chief executive officer after the bank was fined 290 million pounds ($456 million), told British lawmakers this month that other banks also lowballed Libor submissions.

"Tens, if not hundreds, of billions of dollars of loans are originated or sold within this state each year with rates tied to USD Libor," New York-based Berkshire Bank said in its complaint. The New York banks "were unable to collect the full measure of interest income to which they were entitled," Berkshire said.

Berkshire seeks to represent all banks, savings-and-loan institutions and credit unions that are based in New York or have most of their operations in the state. There are several hundred such institutions, the bank said.

More: http://www.businessweek.com/news/2012-07-29/berkshire-bank-sues-barclays-citigroup-over-alleged-libor-fraud

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Thank you,

Eric Newman, Esq., CCEP
Social Media Manager
HCCA/SCCE
eric.newman@corporatecompliance.org
(952) 405-7938
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