“LIBOR LAWSUITS – The attorneys and aggrieved victims are lined up, as perhaps over 900 thousand lawsuits will come. That is how many adjustable rate mortgages were arranged from 2005 to 2009, with underwriting banks serving the complaints. The army of US legal beagles is on the job. The lost income to the victims is obvious. The lawsuits will eventually target the central banks. The fraud reaches into the $trillions easily, when all the derivatives are factored in. Think many $trillions in volume times small percentages skimmed illegally. The mainstream press carefully avoids such topics.“
“The LIBOR field agents like Barclays and JPMorgan and Deutsche Bank are mere executors of the rigging, in order to maintain a matched rate with the artificial near 0% benchmark dictated by the central banks themselves. The Bank of England and USFed will be dragged into the lawsuits, where they will claim executive privilege.” – Jim Willie (1)
“Wow!! look at how many lawsuits we should expect with lieborgate. It is interesting that they expect the Bank of England and the Fed will not be implicated due to the fact that they did this for the good of the public. You can bet the farm that this will also be true when they discover that Fort Knox has no gold and the silver manipulation was done for national security.” – Harvey Organ (2)
Revolt of the Cities: Eyeing Huge Lawsuits Over Libor Rate-Fixing
July 12, 2012
Major Wall Street and London banks who were part of the LIBOR rate-fixing conspiracy, are facing an expanding number of lawsuits that could cost them an estimated tens of billions of dollars — and perhaps much more.
Today’s New York Times reports that there is now a pile-on of cities, states, and municipalities to lawsuits filed in Manhattan Federal Court against the banks that set the LIBOR rate, for having ripped off millions from them. These are cities and other government units that have torn up their budgets, laid people off, and in some cases been forced into bankruptcy. This is hugely explosive politically, especially if properly channeled to putting an end to the financial system which created and thrives on such misery, through LaRouche’s Glass-Steagall policies.
The City of Baltimore and a pension fund in Connecticut, the City of New Britain’s Firefighters’ and Police Benefit Fund, are the first to sue, claiming the LIBOR manipulation cost them millions, according to NPR.
“Now, cities, states, and municipal agencies nationwide, including Massachusetts, Nassau County on Long Island, and California’s public pension system, are looking at whether they suffered similar losses and are weighing legal action,” the Times reports. Peter Shapiro, an investment advisor to Baltimore and other cities, told the Times that “about 75% of major cities have contracts linked to this” — the LIBOR fixing. “Unambiguously, state and local government agencies lost money because of the manipulation of LIBOR,” said Shapiro. “The number is likely to be very, very big.”
The banks targetted include Bank of America, JP Morgan Chase, Deutsche Bank, and Barclays. Darrell Duffie, a Stanford professor of finance, estimates that these lawsuits could result in the banks’ having to pay out tens of billions of dollars, an estimate in line with recent report by Nomura Equity Research.
The Times story emphasized the losses to cities, etc. from transactions involving interest-rate swaps, just barely mentioning pension funds which lost income on their investments if interest rates were held artificially low.
The rather unlimited potential of these lawsuits was pointed out a week ago by, among others, the Seeking Alpha blog and the NY Times “Dealbook” blog. UBS and Barclays have already admitted to wrong-doing in their settlements with government authorities, and are cooperating with authorities, increasing the pressure on their co-conspirator banks to do the same. These admissions of misconduct will open the floodgates to civil lawsuits, since the proof of wrong-doing is already on the record. This also opens to door to a massive number of suits under U.S. federal anti-trust and racketeering statutes. Both the Sherman Anti-trust Act and the Racketeer-Influences and Corruption Organizations (RICO) Act allow for triple damages, and RICO furthermore allows for recovery of attorneys fees, an incentive for the filing of class-action cases. (3)
(1) Extreme Danger Signposts, by Jim Willie CB
(2) Bourses around the world in the red/Raid on silver fails/Swiss 2 year funds at negative .54%/ , by Harvey Organ
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