Fannie Mae Sues Banks

Mortgage giant claims $800 million losses due to rigging of Libor by some of the world's biggest banks.

Fannie Mae sued nine banks, alleging that their manipulation of the benchmark London interbank offered rate (Libor), which four of them have admitted, cost the mortgage-financing company about $800 million.

The U.S. government-owned firm alleged that the banks, including Bank of America Corp., JPMorgan Chase & Co., and Citigroup Inc., acted to suppress the rate through quotes they submitted to the British Bankers Association, according to the complaint filed yesterday in Manhattan federal court.

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