Rigging Scandal Still Pursues Swiss Banks

Rigging scandal still pursues Swiss banks

Two top banks in Switzerland, UBS and Credit Suisse are among 16 banks worldwide being sued in a civil case by the United States Federal Deposit Insurance Corporation (FDIC) over alleged manipulation of the key global interest rate.

UBS was ordered by the country financial regulator to temporarily put aside more reserved money to deal with going litigation cases.

New York’s top prosecutor filed a civil case on Credit Suisse, because of dollar fraud and failing to do proper checks on mortgage bonds.

British   Barclays and Royal Bank of Scotland, Switzerland’s biggest bank UBS and Rabobank of the Netherlands – have previously paid the amount of total $3.6 billion to settle U.S. and European regulatory charges of cheating the LIBOR. The banks signed agreements with the U.S allow them to avoid criminal prosecution if they meet certain conditions.

A string of global banks and agents, including Barclays and the Royal Bank of Scotland, have faced both criminal and civil penalties for their involvement in the scandal.

Few banks have been found to have under stated their submissions in the period during and after the financial crisis.

Some of the  banks are also being sued by the FDIC include  JPMorgan Chase & Co. Citigroup Credit Suisse, HSBC, Rabobank, UBS, Royal Bank of Scotland and Deutsche Bank AG.

US Federal Housing Finance Agency (FHFA) reports, Fannie and Freddie untimely might   have lost more than $3 billion on their transactions from the banks rate-rigging. The FHFA oversees Fannie and Freddie, both of which were rescued during the 2008 financial crises and are currently   government controlled.