Rate-rigging may have cost governments millions
An alleged scheme by major banks to manipulate a key interest rate at the height of the financial crisis may have cost state and local governments hundreds of millions of dollars, according to The New York Times.
The city of Baltimore is the lead plaintiff in a class-action federal lawsuit against about a dozen banks involved in the supposed rate-rigging, and many other governments are also considering legal action.
The reported manipulation involves banks that determine the London interbank offered rate, or Libor. That rate is a measure of how much banks pay to borrow from each other and is a benchmark for borrowing on many financial contracts, including millions of dollars borrowed by governments and municipal agencies.
Read the entire story in American City & County, our sister publication.