(Corrects timing of UBS settlement over LIBOR in paragraph 7 to
"last December" from "last week")
By Karen Freifeld
NEW YORK, Sept 23 A U.S. credit union regulator
on Wednesday sued 13 banks over alleged manipulation of LIBOR,
claiming credit unions lost millions of dollars in interest
income as a result of rate-rigging.
The National Credit Union Administration brought the lawsuit
against JPMorgan Chase & Co, Credit Suisse Group AG
, UBS AG and 10 other international banks on
behalf of five failed credit unions.
The complaint, filed in U.S. District Court in Kansas, says
the credit unions held tens of billions in investments and other
assets that paid interest streams pegged to LIBOR.
"The credit unions received less in interest income than
they were otherwise entitled to receive," the lawsuit says, as a
direct result of the conspiracy, which violated state and
federal anti-trust laws.
Spokesmen for JPMorgan Chase and Credit Suisse declined
comment. UBS did not immediately respond to a request for
Over a dozen banks and brokerage firms have been
investigated worldwide over alleged manipulation of LIBOR, the
benchmark for setting interest rates around the globe.
UBS last December agreed to pay about $1.5 billion in
penalties to resolve criminal, civil and regulatory probes by
the United States, Britain, Switzerland and Japan into alleged
Barclays Plc and Royal Bank of Scotland Group Plc
have also reached settlements with authorities.
Big banks already face a slew of LIBOR lawsuits by investors
and some local governments over the alleged conspiracy.
The banks are accused of artificially manipulating LIBOR
between 2005 and 2010 by falsely reporting the interest rates at
which they were able to borrow.
LIBOR, which stands for the London Interbank Offered Rate,
is the benchmark interest rate for trillions of dollars of
credit cards, mortgages, student loans, variable interest-rate
notes and other lending products.
The five failed corporate credit unions are U.S. Central,
Western Corporate, Members United, Southwest and Constitution.
The case is National Credit Union Administration Aboard v.
Credit Suisse Group AG, et al, U.S. District Court, District of
The other banks include Lloyds Banking Group Plc,
Westlb AG, Royal Bank of Scotland, Cooperatieve
Centrale Raiffeisen Boerenfleenbank B.A., The
Norinchukin Bank, the Bank of Tokyo-Mitsubishi UFJ Ltd
, HBOS Plc, Societe Generale SA
and Royal Bank of Canada.
(Editing by Eric Walsh and Gerald E. McCormick)