MORE NATIONAL NEWS
West Virginia News
News from region's first prime-time newscast. You'll find it First On Fox!
FANNIE MAE-LIBOR LOSSES
Fannie Mae sues 9 banks over losses linked to LIBOR rate-rigging scandal
Reported by: Associated Press
Reported: Thursday, October 31, 2013 3:25 PM EDT
Fannie Mae filed a lawsuit Thursday against nine major banks that alleges the mortgage giant lost hundreds of millions of dollars after they rigged a key global interest rate.
Fannie claims it suffered $800 million in losses from transactions based on the banks' false submissions of their borrowing costs used to calculate LIBOR.
Four of the banks sued — two British, one Swiss and one Dutch — have been fined a total $3.6 billion by U.S. and British regulators for manipulating LIBOR.
Fannie's smaller sibling Freddie Mac filed similar suits against 15 LIBOR-setting banks in March.