Charles Schwab Sues Libor-Rate Setting Banks

Rebuffed in the Southern District of New York,  Schwab has sued a slew of banks in California state court, alleging that the banks’ manipulation of the Libor benchmark rate cost Schwab and some of its funds millions of dollars in interest income. Bank of America, Citigroup and J.P. Morgan Chase are among the defendants, though most are foreign-based institutions. The complaint alleges violations of state and common law and the Securities Act of 1933. This, the author says, will be far from the last case generated by the Libor scandal.