CORRECTED-U.S. credit union regulator sues global banks over LIBOR

Tue Sep 24, 2013 9:12am EDT
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(Corrects timing of UBS settlement over LIBOR in paragraph 7 to "last December" from "last week")

By Karen Freifeld

NEW YORK, Sept 23 (Reuters) - A U.S. credit union regulator on Wednesday sued 13 banks over alleged manipulation of LIBOR, claiming credit unions lost millions of dollars in interest income as a result of rate-rigging.

The National Credit Union Administration brought the lawsuit against JPMorgan Chase & Co, Credit Suisse Group AG , UBS AG and 10 other international banks on behalf of five failed credit unions.

The complaint, filed in U.S. District Court in Kansas, says the credit unions held tens of billions in investments and other assets that paid interest streams pegged to LIBOR.

"The credit unions received less in interest income than they were otherwise entitled to receive," the lawsuit says, as a direct result of the conspiracy, which violated state and federal anti-trust laws.

Spokesmen for JPMorgan Chase and Credit Suisse declined comment. UBS did not immediately respond to a request for comment.

Over a dozen banks and brokerage firms have been investigated worldwide over alleged manipulation of LIBOR, the benchmark for setting interest rates around the globe.

UBS last December agreed to pay about $1.5 billion in penalties to resolve criminal, civil and regulatory probes by the United States, Britain, Switzerland and Japan into alleged rate manipulation.   Continued...