The world’s banks have paid a lot of money—I mean, really a whole lot of money—to put the whole manipulating-the-single-most-important-number-in-all-of-finance-for-their-benefit thing behind them. And yet, the damned thing just won’t cooperate and stay behind them, mostly because there are things called plaintiff’s attorneys and enterprising litigators ready to assure would-be clients that the failure of their business wasn’t actually their fault at all—it was the LIBOR manipulators’.
This is at best quite annoying and at worst potentially quite ruinous, the latter because, well: a lot of money! Luckily for all those loveable rate-rigging global financial institutions, it’s turning out to be the former, if an eight-figure settlement even qualifies as annoying these days.
Citigroup Inc, Deutsche Bank AG and HSBC Holdings Plc have agreed to pay a combined $132 million to settle a U.S. class action brought by futures traders accusing them of manipulating the Libor benchmark interest rate, according to a U.S. court filing on Wednesday….
The money would go to proposed classes consisting of anyone who traded in Eurodollar futures on exchanges, including but not limited to the Chicago Mercantile Exchange, between Jan. 1, 2003 and May 31, 2011, according to the filing.
Deutsche Bank will pay most of that $132 million, because obviously. Less clear is whether they even hear about such things in Frankfurt anymore, or if any Libor-related settlements under $200 million are essentially automated at this point, or just handled by some guy in the New York mailroom.