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Fannie Mae is suing nine major banks, both domestic and abroad, for costing them over $800 million for rigging the benchmark rates.
USA Today reported that the nine banks targeted in the lawsuit are: JP Morgan Chase, Citigroup, Bank of America, Barclays, UBS, Royal Bank of Scotland, Deutsche Bank, Credit Suisse and Rabobank.
The Dutch bank, Rabobank, admitted Thursday that that their employees engaged in fixing benchmark interest rates.
Benchmark rates help to determine the borrowing costs for trillions of dollars of mortgages, business loans, credit cards and other financial products, according to the NY Times .
Rabobank offered to pay over $1 million in criminal and civil penalties, so did UBS, Barclays and Royal Bank of Scotland
The Dutch bank was being investigated by the U.S. Government and European governments on whether or not their actions cost the governments to lose any money.
Fannie Mae says it lost millions of dollars due to the manipulation of the benchmark rates by the nine major banks and wants compensation. "Fannie Mae filed this action to recover losses it suffered as a result of the defendants' manipulation of Libor. We have a responsibility to be good stewards of our resources," the giant mortgage lender said.
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