Big Guns Of State And Local Governments As Well As US Justice Department Joining Forces In Investigation Of US Banks Involved In Libor Scandal

 
Schneiderman referred to the rate rigging actions as despicable conduct. State and local governments acting together can impose larger claims against banks and have greater leverage during settlement negotiations.
 
By consolidating all claims, state and local governments represent a much larger group of plaintiffs.
 
The Libor rate is a benchmark created from a daily survey of banks on behalf of the British Bankers Association of London that asks respondents how much they pay to borrow from each other over different periods in various currencies.
 
Trillions of dollars’ worth of transactions are conducted each day based on that benchmark rate.
 
The damages that resulted from the scandal are vast and difficult to assess.
 
Banks have already been sued by the City of Baltimore and San Diego County.
 
With so much fallout still to come from the scandal, investors may wish to reevaluate their bank holdings or refrain from making new investments until the dust has settled.

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