Several banks of London are facing legal action by Freddie Mac for the suffering and losses that the mortgage investor had to undergo due to the reports of the manipulations done among these inter-banking operations. The banks that are under the legal scanner at present include UBS AG, JPMorgan Chase & Co., and the Bank of America Corp. along with dozens of other financial banks.
Freddie Mac has accused all these banks that they have collectively holding the value of dollar in order to hide their problems of finance and institution. He states that in order to boost up the profit level of the economic structure, these banks have manipulated the report which has resulted in his loss, as stated in the complaint which is filed at the federal court of Alexandria of Virginia.
According to the words of Richard Leveridge, the lawyer of Freddie Mac regarding the complaint which was declared publicly yesterday, “The manipulation and collusive activity of the banks regarding the publication of false and artificially created low rate has resulted in USD LIBOR to my client.”
It is reported that some of the biggest banks and financial organizations of the world indulged in manipulations and artificial of interest rates which was disclosed after there was probes done on the three continents by several agencies, thus making it one of the biggest scandals in the financial sectors. It is estimated that more than $300 trillion is associated with the LIBOR issue of loans, mortgages and other financial items.
Libor was measured and calculated with help of a poll that is carried out by the company of Thomson Reuters, an activity on behalf of the British Banker’s Association. BBA is stated to be an industry lobby which is asked by firms in establishing the cost of borrowing from different banking association within various time periods in relation with different currencies.
The list of banks that are named in the complain of defendants along with the British Banker’s Association include Barclays Plc, Deutsche Bank AG, Credit Suisse Group AG, Citigroup Inc., Royal Bank of Canada and many more. As per the accusation placed by Freddie Mac, these banks have indulged in fraud along with violation of legal contract. It is revealed that Mac is seeking financial compensation for various damages along with punitive harm and Sherman Act violations.
The company of Freddie Mac states that the defendants have used false manipulation and dishonest means to strengthen their reputation in the economic market by underwriting higher fees and offering prices for various financial products from consumers.
The banks against which the complaint has been filed have however refused to make any comment on the lawsuit process. Danielle Romero-Apsilos of Citigroup, Brandon Ashcraft of Barclays, Jennifer Zuccarelli of JP Morgan and more declined to say anything at present.