(Source: DealB%%k By KEVIN ROOSE) – Charles Schwab, the brokerage firm and investment manager, sued 11 major banks on Tuesday, claiming they conspired to manipulate a borrowing benchmark used to set interest rates. In a pair of lawsuits filed in the Federal District Court in San Francisco, the firm accused the banks, including Bank of America, JPMorgan Chase and Citigroup, of colluding to depress the London Interbank Offered Rate. That conspiracy, the suits allege, allowed the banks to artificially deflate the numbers used to calculate the benchmark, thereby throwing off interest rates for Libor-based securities and depriving investors of the returns they would have earned had the numbers been accurate.
Source: DealB%%k By KEVIN ROOSE
August 25, 2011, 5:47 pm
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