Banks Fight Libor Antitrust Case

Setting the rate isn’t a competitive process, they argue in court.

Lawyers for Bank of America Corp., JPMorgan Chase & Co. and other financial institutions fighting antitrust claims over the London interbank offered rate told a federal judge that setting the rate isn’t a competitive process.

The banks asked U.S. District Judge Naomi Reice Buchwald in Manhattan today to dismiss lawsuits accusing the banks of manipulating Libor -- a key metric for setting interest rates for trillions of dollars in financial instruments.

2008 Report

In questioning the plaintiffs’ lawyers today, Buchwald referred to a 2008 Wall Street Journal article on Libor about a study that cast doubt on the integrity of the rate. She asked them why they didn’t sue when the article came out, rather than waiting until regulators began issuing subpoenas to the banks.

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