WASHINGTON – Bank of Tokyo-Mitsubishi UFJ Ltd. and Norinchukin Bank are among 16 major lenders being sued by the U.S. Federal Deposit Insurance Corp. over alleged manipulation of interbank lending rates, U.S. media reports said.
In the damages suit, filed Friday, the FDIC blames the Japanese banks and their European and American peers for manipulating the London Interbank Offered Rate (Libor) between 2007 and 2011, causing substantial losses to 38 U.S. banks that were placed under state control after the 2008 financial crisis, according to the reports.
The banks targeted by the FDIC include Credit Suisse, Deutsche Bank, Barclays, HSBC, Bank of America and Citigroup.
Acting as receiver for the failed banks, the FDIC also sued the British Bankers’ Association, which had been setting the Libor.
U.S. and European regulators have previously fined banks involved in the Libor manipulation scheme. Last December, the European Union slapped fines of €1.7 billion (¥240 billion) on Deutsche Bank, France’s Societe Generale and four other lenders for violating the competition law.