Saturday, 28 May 2016
Last updated 20 hours ago
Apr 20 2011 | 1:35pm ET
U.S. authorities are investigating whether a group of major banks conspired to manipulate a key interest rate, but one hedge fund isn’t waiting for the results to sue.
FTC Capital on Friday filed suit in New York, accusing the dozen banks that set the U.S. dollar London interbank offered rate of damaging its trades through alleged manipulation of the benchmark. The Vienna-based hedge fund claims that their actions affected Eurodollar futures, which FTC trades.
FTC didn’t specify how its trading had been affected by the banks’ alleged misdeed; it also did not specify how much it is seeking in damages.
“If Libor had been fairly priced, my clients would not have been harmed trading the Eurodollar market,” FTC’s lawyer, David Kovel, told The Wall Street Journal.
FTC sued 12 banks that set Libor. They include Barclays, Citigroup, Credit Suisse Group, Bank of America, Deutsche Bank, HSBC Holdings, JPMorgan Chase, Lloyds Banking Group, the Royal Bank of Scotland Group and UBS.