$100M Settlement Reached with Citibank, Attorney General Says
BOISE, Idaho – A $100 million settlement has been reached with Citibank for fraudulent conduct involving the manipulation of LIBOR, according to Idaho Attorney General Lawrence Wasden.
“The LIBOR manipulation we alleged was an example of big banks losing sight of honest and ethical business practices,” Wasden said in a prepared statement on Friday. “As a result, governmental and non-profit entities in Idaho suffered. I commend Citibank for addressing these allegations and providing a way for affected parties to be made whole.”
A news release about the settlement explains, LIBOR is a benchmark interest rate that affects financial instruments worth trillions of dollars and has a widespread impact on global markets and consumers.
After an investigation involving 42 states, attorneys general allege that Citibank manipulated LIBOR in a number of ways. This includes the company misrepresenting the integrity of the LIBOR benchmark to trading counterparties, including state and local governmental agencies and not-for-profit institutions.
Wasden said governmental and non-profit organizations with LIBOR-linked swaps and other investment contracts with Citibank will be notified if they are eligible to receive part of the settlement fund of $95 million.
The news release says the balance of the settlement fund will be used to pay costs and expenses of the investigation and for other uses consistent with state laws.