Libor Manipulation Probe and Litigation Update


The record-breaking £59.5 million fine imposed on Barclays by the Financial Services Authority (FSA) and $360 million penalty imposed by the U.S. Commodity Futures Trading Commission and Department of Justice in connection with the improper submission of London InterBank Offered Rate (Libor) rates has led to intense public scrutiny of Barclays’ practices, procedures and management and possible misconduct by other financial institutions. Sedgwick has been watching this issue closely for a few months. In May, Chicago partners Eric Scheiner and Jennifer Broda wrote an article published in the PLUS Journal about the price-fixing cases in the U.S., the development of the investigations, and the impact for insurers before the headlines and Barclays settlement was announced.

As U.S. and U.K. regulators’ investigations into the conduct of other major banks are ongoing, it seems possible that, depending on their findings, they could also be the subject of significant penalties. This may fuel ongoing litigation in the U.S. against financial institutions and other parties in relation to Libor manipulation and it is possible similar claims may be made in other jurisdictions, such as the U.K.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sedgwick LLP | Attorney Advertising

Written by:


Sedgwick LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.