Court reinstates lawsuits alleging collusion by big banks
Source: Associated Press
Court reinstates lawsuits alleging collusion by big banks
Updated 6:47 pm, Monday, May 23, 2016
NEW YORK (AP) Lawsuits against 16 of the world's largest banks alleging they colluded to manipulate the primary benchmark for global short-term interest rates have been reinstated by a federal appeals court that found Monday that a judge had rejected the litigation too quickly.
Saying it wasn't a close call, the 2nd U.S. Circuit Court of Appeals in Manhattan restored lawsuits seeking billions of dollars in damages brought by investors in financial instruments mostly issued by the banks. The financial instruments carried interest rates tied to the London Interbank Offered Rate known as LIBOR. LIBOR is used by banks to borrow from each other and affects trillions of dollars in contracts around the world, including mortgages, bonds and consumer loans.
The lawsuits in Manhattan federal court had been dismissed by a judge who reasoned that the LIBOR-rate setting process was collaborative rather than competitive. The judge also found any manipulation of the rates did not cause investors anticompetitive harm.
But the appeals court said in a ruling written by Circuit Judge Dennis Jacobs that the lawsuits were dismissed at such an early stage that the plaintiffs did not yet have a chance to try to prove that the banks used LIBOR in setting rates for lending transactions. The 2nd Circuit said that and other questions could only be "properly analyzed" at a later stage in the litigation.
Read more: http://www.chron.com/news/us/article/Court-reinstates-lawsuits-alleging-rate-collusion-7940917.php
Festivito
(13,452 posts)Judgement seems a labor of literally laughable LIBOR.
scottie55
(1,400 posts)Screwage.
Festivito
(13,452 posts)Or, "and" you were not anticompetatively harmed.
McCamy Taylor
(19,240 posts)will have to stand because the SCOTUS will be unable to overturn it. Meaning that if the banksters lose in the appellate court, they are toast.
scottie55
(1,400 posts)But they are bankers.
They break the law, pay a fine, and buy bigger houses in the Hamptons.
If they were black, or poor, they would be doing 10 years.
We all know how the game is played.
Justice!!!!!!!!!!!!!!
annabanana
(52,791 posts)closeupready
(29,503 posts)pension funds, for example, would be in a position to claim to be victims of theft?
dixiegrrrrl
(60,010 posts)We have to be much more vigilant about those courts which were packed by the Republicans.