Fannie Mae sued nine major banks over allegations their manipulation of the London interbank offered rate cost the mortgage financing company about $800 million.
The U.S. government-owned firm alleged that banks including Bank of America Corp., JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) acted to suppress the rate, according to a copy of the complaint filed today in Manhattan federal court. The filing couldn't be immediately confirmed in court records.
Global authorities have been investigating claims that more than a dozen banks altered submissions used to set benchmarks such as Libor to profit from bets on interest-rate derivatives or to make the lenders' finances appear healthier.
Start your day with Reason. Get a daily brief of the most important stories and trends every weekday morning when you subscribe to Reason Roundup.