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U.S. judge rejects student loan claims in Libor litigation
Source: Reuters
US | Wed Nov 4, 2015 10:50am EST
U.S. judge rejects student loan claims in Libor litigation
NEW YORK | BY JONATHAN STEMPEL
The U.S. judge overseeing private litigation accusing global banks of manipulating the Libor interest rate benchmark has dismissed class-action claims by borrowers who alleged that their student loans were "unconscionable" because lenders manipulated their rates.
In a 68-page decision on Tuesday night, U.S. District Judge Naomi Reice Buchwald in Manhattan said it was not "substantively unreasonable" to incorporate Libor into the floating-rate portions of the borrowers' loans, given that even sophisticated borrowers thought it a sufficiently reliable benchmark to use.
Buchwald also said the lawsuits failed to allege that any manipulation by JPMorgan Chase & Co and Bank of America Corp, the two lenders that were sued, increased the plaintiffs' loan payments.
Lawyers for the plaintiffs did not immediately respond on Wednesday to requests for comment.
[font size=1]-snip-[/font]
U.S. judge rejects student loan claims in Libor litigation
NEW YORK | BY JONATHAN STEMPEL
The U.S. judge overseeing private litigation accusing global banks of manipulating the Libor interest rate benchmark has dismissed class-action claims by borrowers who alleged that their student loans were "unconscionable" because lenders manipulated their rates.
In a 68-page decision on Tuesday night, U.S. District Judge Naomi Reice Buchwald in Manhattan said it was not "substantively unreasonable" to incorporate Libor into the floating-rate portions of the borrowers' loans, given that even sophisticated borrowers thought it a sufficiently reliable benchmark to use.
Buchwald also said the lawsuits failed to allege that any manipulation by JPMorgan Chase & Co and Bank of America Corp, the two lenders that were sued, increased the plaintiffs' loan payments.
Lawyers for the plaintiffs did not immediately respond on Wednesday to requests for comment.
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Read more: http://www.reuters.com/article/2015/11/04/us-libor-lawsuits-idUSKCN0ST27120151104
