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Credit Suisse Group AG, Bank of America Corporation, J.P. Morgan Chase & Co., HSBC Holdings plc, Barclays Bank plc, Lloyds Banking Group plc, WestLB AG, UBS AG, Royal Bank of Scotland Group plc, Deutsche Bank AG, The Norinchukin Bank, and Citibank, N.A., have been named in two separate class actions alleging fraud and the manipulation of LIBOR Rates and Exchange Traded LIBOR Based Derivatives.
LIBOR or the "London Interbank Offered Rate" a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London wholesale money market (or interbank lending market).
LIBOR serves as the pricing benchmark for the most actively exchange-traded Libor-based interest rate futures, options and swap contracts in the world, including: CME 1-Month Eurodollar futures and options contracts, CME 3-Month Eurodollar futures and options contracts, CBOT mini-sized Eurodollar futures and options contracts, and CBOT 5-Year, 7-Year, 10-Year, and 30-Year Interest Rate Swap futures and options contracts (collectively "Exchange Traded Libor-Based Derivatives"). As an intended, proximate and direct result of Defendants’ manipulation of Libor, billions (if not trillions) in dollars of Exchange Traded Libor-Based Derivatives.
According to the complaints, beginning as early as 2006 and continuing though at least 2009, these contributor banks intentionally caused and created artificial Libor rates, including artificially manipulating LIBOR prices in violation of the Commodity Exchange Act, 7 U.S.C. 1, and through a combination, agreement and conspiracy to fix - Libor prices and to restrain trade in the market for Libor-based derivatives in violation of the Sherman Act, 15 U.S.C. §1.
The conspiracy consisted of a continuing agreement, understanding or concerted action between and among Defendants and their co-conspirators in furtherance of which Defendants fixed, maintained, and/or made artificial prices for Libor-based derivative contracts.
Entities who purchased or sold Exchange Traded Libor-Based Derivatives, including CME Eurodollar futures contracts, on either the Chicago Mercantile Exchange ("CME") or Chicago Board of Trade ("CBOT"), during the period of at least January 1, 2006 through and including December 31, 2009 may have standing to bring these claims.
For more information contact Nicholas J. Guiliano, Esquire, The Guiliano Law Firm, P.C. or call (877) SEC-ATTY.
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