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Record Penalty and Sanctions Imposed Against Libor Panel Bank By Both US and UK Financial Regulatory Agencies

Barclays Bank Plc and Barclays Capital, Inc. (Barclays) have agreed to pay combined civil penalties of $452.3 million to the U.S. Department of Justice, U.S. Commodities Futures Trading Commission, and the U.K. Financial Services Authority to settle the financial regulatory agencies’ allegations that Barclays attempted to manipulate two global benchmark rates, the British Bankers’ Association’s (BBA) London Interbank Offered Rate (LIBOR) and the European Banking Federation’s Euro Interbank Offered Rate (Euribor). Of that total amount, the CFTC imposed the largest civil penalty in its history: $200 million.

Hausfeld LLP Chairman, Michael Hausfeld, whose firm serves as interim co-lead class counsel in the related civil case against Barclays and other banks for manipulation of LIBOR stated: “The City of Baltimore and other Plaintiffs in our complaint have alleged that LIBOR panel banks engaged in a global conspiracy to manipulate LIBOR rates, including U.S. Dollar LIBOR. We are therefore pleased that the information being made public in the CFTC Order, DOJ non-prosecution agreement, and FSA notice supports and confirms those allegations.  This emphasizes the pervasiveness of manipulation in the financial markets in which integrity and consumer confidence must be restored.”

The City of Baltimore, and the class it seeks to represent (Plaintiffs), are purchasers of financial instruments that paid interest indexed to LIBOR from August 2007 through May 2010.The Plaintiffs allege that the Defendants, including Barclays, knowingly understated their true borrowing costs, and by doing so, caused LIBOR to be calculated or suppressed at artificially low rates. The Plaintiffs allege that the defendants’ manipulation of LIBOR caused the Defendants to pay unduly low interest rates to purchasers of LIBOR-based financial instruments. As a result, the Plaintiffs allege, Barclays and the other defendant banks reaped hundreds of millions, if not billions, of dollars in ill-gotten gains.

For more information on this case, please contact Michael Hausfeld, William Butterfield, or Hilary Scherrer.

About Hausfeld LLP:

Hausfeld LLP is a global claimant litigation firm with 31 attorneys throughout four offices in Washington, DC, Philadelphia, San Francisco, and London. The firm is at the forefront of numerous innovative legal actions that are expanding the quality and availability of legal recourse for aggrieved individuals and businesses around the world. It represents individuals as well as domestic and international companies of all sizes and across a wide range of industries, in complex litigation and dispute resolution related to anticompetitive and other illegal conduct in the United States, Europe, and elsewhere.


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Practice Areas: Securities and Financial Services, Antitrust / Competition