Legal News

Class Action Suit Filed Against 12 Major Banks by Homeowners over Libor Manipulation
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Monday, the Financial Times reported that homeowners in New York have filed a class action suit against 12 major banks claiming that Libor manipulation made mortgage repayments costlier than they should have been under ordinary circumstances. While other class action suits have been brought against the banks concerning Libor manipulations by investors and municipalities, this is the first such class action brought by homeowners.

One of the lead plaintiffs in the lawsuit, Annie Bell Adams, is a pensioner who had her home repossessed as her subprime mortgage was securitized to Libor-based debt obligations, and then sold off by the banks to investors.

The lawsuit by the homeowners alleges that banks in North America and Europe manipulated the London interbank rate and made it higher on particular dates on which adjustable mortgage interest rates were reset. The Libor manipulations by banks led to homeowners paying more between 2000 and 2009 than they should have been paying. The defendants include Bank of America, UBS, and Barclays.

  
What
Where


The FT quoted the attorney of the class action saying that the plaintiffs could ultimately number more than 100,000 and most of them have lost thousands of dollars due to Libor manipulation by banks. Each of the plaintiffs claims to have lost thousands of dollars on mortgage repayments due to Libor manipulations.

Barclays was fined in June by regulatory authorities for manipulating the Libor interest rate system, while other banks continue to face probes.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Deputy General Counsel / Senior Deputy General Counsel

USA-CA-Sacramento

Cal Cities Culture and Mission Cal Cities is dedicated to creating a collaborative and inclusive ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top