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

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...