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!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney

USA-WY-Laramie

Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now

RELEVANT JOBS

Legal Assistant / Paralegal

USA-FL-Tavares

Tavares boutique and growing law firm is looking for a full-time legal assistant / paralegal to work...

Apply now

Litigation Associate Attorney

USA-CA-San Francisco

Andrus Anderson LLP is a plaintiffs’ firm in San Francisco looking for a full-time associate w...

Apply now

Maine Litigation Attorney

USA-ME-Portland

Busy New England business law firm seeks Maine Litigation Attorney based in our Portland, Maine offi...

Apply now

Maine Foreclosure Attorney Operations Manager

USA-ME-Portland

Bendett & McHugh is looking for a strong Foreclosure Attorney Operations Manager for our Maine Forec...

Apply now

SEARCH IN ARCHIVE

To Top