Hedge Funds Among Plaintiffs Suing Over Libor

Aug 30 2012 | 3:47am ET

Investors are racing to U.S. courthouses to sue banks implicated in the Libor rate-fixing scandal, and hedge funds aren't about the be left out of the potential for billions in payouts.

Hedge funds are among the plaintiffs in the growing number of lawsuits over the scandal. Austrian hedge fund FTC Capital is seeking class-action status for a complaint that seeks damages against banks on the U.S. dollar Libor rate-setting panel, The Wall Street Journal reports. That suit deals with the futures market, with a notional value of more than $560 trillion.

Other investors, including BlackRock and the California Public Employees' Retirement System, are mulling their options.

How successful the lawsuits might be remains to be seen. Macquarie Research says the damage to banks could be as high as $176 billion, while Morgan Stanley sees potential liability of just $7.8 billion.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…