EU asset managers accuse US banks of Libor fixing

FTC Capital GmbH of Vienna, FTC Futures Fund SICAV of Luxembourg and FTC Futures Fund PCC Ltd. of Gibraltar allege the banks sold Libor-based futures, options, swaps and derivative instruments “at artificial prices that defendants caused” thereby harming investors, according to Bloomberg. For three years from 2006 to 2009, the banks “collectively agreed to artificially suppress the Libor rate” and in early 2008, “during the most significant financial crisis since the great depression,” the rate remained steady when it “should have increased significantly,” the funds contend. The inves...