Connect with us

National News

Citibank Fined $100 Million for Interest Rate Manipulation

The interest rates are not only tied to rates within Citibank but interest rates worldwide.

Published

on

Citibank reached a settlement with 42 states to pay a $100 million fine after an investigation for manipulation of LIBOR, a benchmark interest rate that helps set lending rates around the world.

New York Attorney General Barbara D. Underwood announced the settlement with Citibank on Friday. “Our office has zero tolerance for fraudulent or manipulative conduct that undermines our financial markets,” Attorney General Underwood said in a press statement. “Financial institutions have a basic responsibility to play by the rules – and we will continue to hold those accountable who don’t.”

The investigation was conducted by a group of 42 state Attorneys General offices, and the settlement contains details of communication exchanged between Citibank employees as they obscured or misreported what they were paying for interbank loans. This mainly occurred in 2008 and 2009.

LIBOR, or the London Interbank Offered Rate, has been considered to be the most important interest rate in the world as it has a major impact on everyday borrowers, with rates on loans such as mortgages tied to LIBOR.

This is the third bank that settled with state attorneys general for illegally influencing LIBOR, the other two being Barclays and Deutsche Bank. Collectively, the three banks have been fined $420 million.

Citibank has agreed to comply with ongoing investigations in other banks’ LIBOR cases.

Jumpstart a career doing something you are passionate about with one of College Media Network’s courses. Read about our current offerings, schedule and unique virtual learning environment here.

Arianna is College Media Network's Weekend Editor and a student at Penn State University. She has written for various websites, including Thought Catalog and The Odyssey Online. Arianna also runs her own blog called Yoga With Mimosas in which she combines her passion for fitness and writing in hopes of inspiring and empowering others through her work.

CMN Reports

National News4 days ago

Poll: Almost 40% of College and University Undergraduates Nationwide Favor Socialism

Socialism is slowly rising amongst college youth.

by , The Catholic American University
Employment2 weeks ago

California Bans Discrimination Based on Natural Hairstyles

The Golden State is combating discrimination based on appearance.

by , The Catholic American University
Equality3 weeks ago

The Supreme Court Determines the Fate of Political Representation

The country's high court determines the future of representation.

by , The Catholic American University
Equality2 months ago

Colorado Bans Conversion Therapy for LGBTQ Youth

The Centennial State moves forward in progress for the queer community.

by , The Catholic American University
Government2 months ago

Illinois Legalizes Recreational Marijuana

The Prairie State advances towards cannabis legalization.

by , The Catholic American University
Government2 months ago

New Hampshire Becomes the 21st State to Abolish Capital Punishment

The Granite State makes a huge step towards criminal justice reform.

by , The Catholic American University
Equality2 months ago

Maine Bans LGBTQIA+ Conversion Therapy for Minors

The Pine Tree State further progresses in queer rights.

by , The Catholic American University
Election 20202 months ago

Elijah Manley: The Youngest Person to Ever Run for U.S. President

Meet the youngest person ever to run for U.S. president.

by , The Catholic American University

Most Read From CMN Writers

[]
1 Step 1
keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right

Copyright © College Media Network