The Resolution Law Group: RBS Securities’ Japan Unit to Pay $50M Criminal Fine Over Libor Manipulation

A US judge has ordered Royal Bank of Scotland Group Plc’s (RBS) banking unit in Japan to pay a $50 million fine over its involvement in manipulating LIBOR. RBS Securities Japan Ltd. entered a guilty plea to wire fraud as part of its parent company’s $612 million securities settlements to resolve civil and criminal charges over the rate manipulation.

On December 31, RBS Securities Japan and the US government turned in a joint court filing stating that from at least between 2006 and 2010 some of the bank’s traders tried to move Libor in a manner that would benefit their positions. The attempted manipulation of over a hundred Yen Libor submissions was reportedly involved.

Authorities say that as a result traders profited at counterparties’ expense. The filing noted that investigations uncovered wrongful behavior involving Libor submission for the yen and another currency and that about 20 RBS traders, including four at the RBS unit in Japan were involved.

Breaking down the $612 million total that RBS and RBS Securities Japan are paying to resolve these Libor claims: $325 million is from a Commodity Futures Trading Commission action, $137 million is from a U.K. Financial Conduct Authority (FCA) action. Aside from the $50 million that the RBS unit in Japan is also paying, $100M is from RBS plc.

LIBOR
LIBOR is the main benchmark for short-term interest rates around the world. It is the reference rate for a lot of interest rate contracts, credit cards, mortgages, student loans, and other lending products for consumers. Other banks have already paid fines for also allegedly manipulating LIBOR, including Deutsche Bank (DB), JPMorgan Chase (JPM), Citigroup (C), and others. Traders at these banks are accused of manipulating LIBOR to their benefit, while making themselves appear more liquid and financially healthier than what was actual. Meantime, other parties sustained losses as a result.

If you feel you are the victim of Securities Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

The Resolution Law Group: Sonoma County Files Securities Lawsuit Over Libor Banking Debacle

Sonoma County, CA is suing Citigroup (C), JPMorgan (JPM), Bank of America (BAC), UBS (UBS), Barclays (BCS), and a number of other former and current LIBOR members over the infamous international-rate fixing scandal that it claims caused it to suffer substantial financial losses. The County’s securities lawsuit contends that the defendants made billions of dollars when they understated and overstated borrowing costs and artificially established interest rates.

Sonoma County is one of the latest municipalities in California to sue over what it claims was rate manipulation that led to lower interest payments on investments linked to the London Interbank Offered Rate. Also seeking financial recovery over the LIBOR banking scandal are the Regents of the University of California, San Mateo County, San Diego Association of Governments, East Bay Municipal Utility District, City of Richmond, City of Riverside, San Diego County, and others.

The County of Sonoma is alleging several causes of action, including unjust enrichment, fraud, and antitrust law violations involving transactions that occurred between 2007 and 2010, a timeframe during which Barclays already admitted to engaging in interest manipulation. The county invested $96 million in Libor-type investments in 2007 and $61 million in 2008. Jonathan Kadlec, the Assistant Treasurer at Sonoma County, says that an investigation is ongoing to determine how much of a financial hit was sustained. Kadlec supervises an investment pool that is valued at about $1.5 billion for the county. He said that LIBOR-type investments, which involve floating securities with interests that are index-based, make up a small portion of the pool.

Already, three LIBOR members have paid over $2.5 billion in penalties over the LIBOR rate-fixing debacle. Earlier this year, Royal Bank of Scotland (RBS) consented to pay $610 million, and last year, UBS consented to pay over $1.5 million while Barclays said it would pay $450 million.

LIBOR
The London Interbank Offered Rate is the global benchmark interest rate for establishing short-term interest rates on financial instruments ranging from sophisticated municipal derivative investments to car loans. The British Banker’s Association sets LIBOR daily. The benchmark interest rate is determined according to the average of the interest rate that each LIBOR member bank says it can borrow from the other bank members. Until the manipulation among LIBOR members was discovered, a member bank’s interbank borrowing rate was considered a mirror of its credit worthiness.

In 2011, regulators from the US, UK, Japan, and Switzerland said they would investigate LIBOR rate manipulation influencing financial markets globally. Banks that were members of LIBOR were accused of manipulating LIBOR to up their profits and report borrowing rates that were suppressed to make them appear to be in greater financial health.

Please do not hesitate to email or call the Libor Fraud Attorneys at The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

Freddie Mac recently filed a massive lawsuit against big banks for damages sustained due to alleged manipulation of interest rates.

Freddie Mac recently filed a massive lawsuit against big banks for damages sustained due to alleged manipulation of interest rates.

The LIBOR scandal of last summer confirmed that Bank of America, JPMorgan, Chase, UBS, Credit Suisse Group, and many other banks worked together to artificially control the interest rates charged for mortgage loans and credit cards.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “ Freddie Mac, as the government-controlled mortgage finance company,  has a major investment in mortgage-related securities, and the rigging of the LIBOR rates may have cost Freddie Mac as much as $3 Billion.”

Many banks have already been fined hundreds of millions of dollars: Barclays paid the British and U.S. governments $453 Million, UBS paid $1.5 Billion, and the Royal Bank of Scotland paid $612 Million.

Mr. Broderick adds that “Homeowners rely on Freddie Mac.  A weakened Freddie Mac makes it harder for Americans to purchase or refinance homes.  The housing market will continue to suffer until it is fixed by the Courts or the Legislature.   Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners.  Homeowners cannot expect the problem to fix itself.”

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

The Resolution Law Group is currently enrolling clients into the pending lawsuit.  For further information, visit its website at www.TheResolutionLawGroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

Freddie Mac Sues Big Banks Over Rate Rigging

It’s the government-controlled mortgage finance company versus Bank of America, JPMorgan Chase, UBS, Credit Suisse Group, and many others. Freddie Mac says they all worked together to rig LIBOR – the benchmark rate used to establish interest rates on everything from mortgage loans to credit cards.

If you need some background on LIBOR or the scandal surrounding it, check out our story from last summer. But all you really need to know is that big banks were caught manipulating the rate to their advantage, in many cases for years, forcing millions to pay inflated interest on all kinds of loans, all over the world.

Many banks have already been fined hundreds of millions of dollars: Barclays paid the British and U.S. governments $453 million; UBS paid $1.5 billion; the Royal Bank of Scotland, $612 million.

And now Freddie Mac, which has major investments in mortgage-related securities affected by LIBOR, wants some payback too. A week ago, the mortgage company sued more than a dozen banks for unspecified damages. Reuters reports the bank shenanigans may have cost the company more than $3 billion.

If you, your family, friends, neighbors or associates have been subjected to Mortgage Fraud, please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud