American mortgage finance giant Fannie Mae is suing the Rabobank and eight others over their alleged participation in manipulating worldwide interest rates.
Fannie Mae says it suffered $800 million in damages from the manipulation of the London interbank offered rate (Libor) and other financial benchmarks used to set interest rates on mortgages, credit cards and other financial products around the world, Forbes magazine reports.
Earlier this week, the Dutch cooperative Rabobank was fined €774m for its role in the Libor interest rate fraud by the British, US and Dutch supervisory authorities.
The suit noted that four of the nine banks – Barclays, UBS, RBS and Rabobank — admitted wrongdoing, and Fannie Mae is using this to bolster their claim that the other banks were participants in the rate manipulation, too.
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