{"id":59327,"date":"2018-02-21T05:01:20","date_gmt":"2018-02-21T05:01:20","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=59327"},"modified":"2018-02-21T05:01:20","modified_gmt":"2018-02-21T05:01:20","slug":"us-fdic-sues-16-banks-alleging-libor-manipulation-in-doral-collapse","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/us-fdic-sues-16-banks-alleging-libor-manipulation-in-doral-collapse.html","title":{"rendered":"US FDIC sues 16 banks alleging Libor manipulation in Doral collapse"},"content":{"rendered":"<h2 style=\"text-align: justify\"><span style=\"font-size: 18pt\"><strong><span style=\"font-family: Arial, Helvetica, sans-serif;color: #000000\">US FDIC sues 16 banks alleging Libor manipulation in Doral collapse<\/span><\/strong><\/span><\/h2>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">A U.S. regulator on Tuesday filed a lawsuit against 16 U.S. and international banks alleging they had manipulated bbaLIBOR, which is a series of interest-rate benchmarks, leading to the collapse of Puerto Rico\u2019s Doral Bank.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">The Federal Deposit Insurance Corp (FDIC), which brought the suit in its capacity as receiver for Doral Bank, alleged that the rate rigging harmed Doral by causing substantial losses with regard to its loan portfolio and derivative holdings.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">The suit is the latest in a long line of lawsuits in the U.S. District Court in Manhattan targeting the alleged rigging by banks of one interest rate benchmark, market or commodity or another.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">The FDIC sought to recover losses that Doral sustained as a result of defendants\u2019 wrongful conduct.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">Doral Financial Corp, Doral Bank\u2019s holding company, filed for Chapter 11 bankruptcy protection in March 2015 to wind down its remaining operations two weeks after its Puerto Rico-based bank unit was seized by regulators.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">The seizure of the bank was sparked in part by a refusal by the island&#8217;s cash-strapped government to pay $230 million in tax refunds claimed by Doral Financial.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">Doral Bank was closed down by Puerto Rico\u2019s financial regulator on Feb. 27, 2015.<\/span><\/p>\n<p><span style=\"font-size: 8pt\">Source:-\u00a0https:\/\/www.reuters.com\/article\/us-usa-fdic-banks\/us-fdic-sues-16-banks-alleging-libor-manipulation-in-doral-collapse-idUSKCN1G50CL?il=0<\/span><\/p>\n<div class=\"fb-background-color\">\n\t\t\t  <div \n\t\t\t  \tclass = \"fb-comments\" \n\t\t\t  \tdata-href = \"https:\/\/www.biphoo.com\/bipnews\/business\/us-fdic-sues-16-banks-alleging-libor-manipulation-in-doral-collapse.html\"\n\t\t\t  \tdata-numposts = \"10\"\n\t\t\t  \tdata-lazy = \"true\"\n\t\t\t\tdata-colorscheme = \"light\"\n\t\t\t\tdata-order-by = \"social\"\n\t\t\t\tdata-mobile=true>\n\t\t\t  <\/div><\/div>\n\t\t  <style>\n\t\t    .fb-background-color {\n\t\t\t\tbackground: #ffffff !important;\n\t\t\t}\n\t\t\t.fb_iframe_widget_fluid_desktop iframe {\n\t\t\t    width: 630px !important;\n\t\t\t}\n\t\t  <\/style>\n\t\t  ","protected":false},"excerpt":{"rendered":"<p>US FDIC sues 16 banks alleging Libor manipulation in Doral collapse A U.S. regulator on Tuesday filed a lawsuit against 16 U.S. and international banks alleging they had manipulated bbaLIBOR, which is a series of interest-rate benchmarks, leading to the collapse of Puerto Rico\u2019s Doral Bank. The Federal Deposit Insurance [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":59332,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[7945,121613,22081,121612,121611],"class_list":["post-59327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-company-news","tag-derivatives","tag-judicial-process","tag-securities-fraud","tag-us-fdic-sues-16-banks-alleging-libor-manipulation-in-doral-collapse"],"_links":{"self":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/59327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/comments?post=59327"}],"version-history":[{"count":0,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/59327\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media\/59332"}],"wp:attachment":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media?parent=59327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/categories?post=59327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/tags?post=59327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}