Berkshire sues 21 banks over Libor scandal
US bank Berkshire Bank has sued 21 banks, among which Barclays, Bank of America and Citigroup, asking for damages over the alleged manipulation of the Libor rate.
The bank filed the case, which could become a group lawsuit, in a federal court in Manhattan, claiming that that Libor fraud lowered interest payments it received.
“Tens, if not hundreds, of billions of dollars of loans are originated or sold within this state each year with rates tied to USD Libor. New York banks were unable to collect the full measure of interest income to which they were entitled,” Berkshire said.
The class action could see hundreds institutions, among which banks and saving institutions, involved.
Berkshire has 11 branches in New York and New Jersey.