Jump to content
Your browser is out of date. It has known security flaws and may not display all features of this websites. Learn how to update your browser[Close]

Libor scandal

Swiss banks face US Libor lawsuit

Freddie Mac is suing two Swiss banks (Keystone)

Freddie Mac is suing two Swiss banks


UBS and Credit Suisse are among 15 banks to be hit with a lawsuit by the United States government-owned mortgage finance company Freddie Mac as a result of the Libor manipulation scandal.

UBS was fined $1.5 billion (CHF1.4 billion) by various regulators last year after admitting its role in the global interest rate rigging scam. Credit Suisse is one of many banks also under investigation.

Freddie Mac is suing the banks, plus the British Bankers’ Association that was responsible for overseeing Libor, after it was found that Libor rates were artificially lowered by certain traders to maximise profits.

The London Interbank Offered Rate (Libor) is used as a reference point for mortgages and other trades worth around $300 trillion.

It is estimated that Freddie Mac and its sister company Fannie Mae could have lost up to $3 billion in interest payments as a result of the manipulation.

UBS and Credit Suisse declined to comment on the lawsuit, the latest in a growing list of legal complaints against banks across the globe.

swissinfo.ch and agencies



All rights reserved. The content of the website by swissinfo.ch is copyrighted. It is intended for private use only. Any other use of the website content beyond the use stipulated above, particularly the distribution, modification, transmission, storage and copying requires prior written consent of swissinfo.ch. Should you be interested in any such use of the website content, please contact us via contact@swissinfo.ch.

As regards the use for private purposes, it is only permitted to use a hyperlink to specific content, and to place it on your own website or a website of third parties. The swissinfo.ch website content may only be embedded in an ad-free environment without any modifications. Specifically applying to all software, folders, data and their content provided for download by the swissinfo.ch website, a basic, non-exclusive and non-transferable license is granted that is restricted to the one-time downloading and saving of said data on private devices. All other rights remain the property of swissinfo.ch. In particular, any sale or commercial use of these data is prohibited.