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.

Did you enjoy this article? Consider supporting College Media Network's mission to support the next generation of journalists. For as little as $2 a month, you can help keep our site ad-free and the future of journalism alive. Go here to donate.

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.

Sign up for the Morning Scoop

and wake up with us each day.

CMN Reports

2018 Midterms1 day ago

House Democrats in Washington Forming a Medicare-for-All Congressional Caucus

Could this be a big enough step toward universal healthcare?

by , The Catholic American University
Equality2 days ago

First Signing Starbucks in America to Open in Washington, D.C.

A huge step in consumer and employment opportunities for the deaf community.

National News2 days ago

Steam Pipe Explodes in Manhattan

Smoke hovering in Manhattan is a traumatizing sight.

by , Senior Editor
National News3 days ago

Trump Is Changing the Colors of Air Force One

Because the Kennedy's were not patriotic enough, right?

by , Senior Editor
National News3 days ago

American University on Lockdown

American University is on lockdown after armed man is reported near campus.

by , American University
Equality4 days ago

10 Black Washington University Students Falsely Accused of Leaving IHOP Without Paying

"The fact that these 10 students, all of whom are African American, were scared and humiliated is unacceptable to us"...

by , American University
Academics5 days ago

Keynote Speakers Highlight Importance of Diversity at College Journalism Workshop

Some important reflections on an important topic.

by , Virginia Commonwealth University
National News6 days ago

Teen Who Urged Boyfriend’s Suicide Through Text Says It Was Free Speech

Apparently, the First Amendment extends to telling your boyfriend to get back into the truck and kill himself.

by , Penn State University

Top Reads