Fannie Mae Wields Libor Settlements In $800 Million Lawsuit Against Banks

Fannie Mae Oct. 31 sued more than a dozen banks and banking-related groups, saying they manipulated the London interbank offered rate (Libor) and asking a federal judge to award $800 million in direct damages, plus as-yet undetermined compensatory and punitive awards (Fed. Nat’l Mortg. Ass’n v. Barclays Bank Plc).

The 71-page complaint filed in the U.S. District Court for the Southern District of New York highlights anew the significant and many-pronged risks that Libor-related claims continue to pose for banks and firms accused of manipulating the widely used benchmark.

Settlements, while allowing banks to sidestep costly and damaging ...