US: HSBC, bondholders reach settlement over Libor rigging

Legal action against financial majors allegedly involved in the manipulation of the London Interbank Offered Rate continues at full speed, with the latest piece of news on this front coming from the new New York Southern District Court and, in particular, an antitrust case involving HSBC and a group of US bondholders.

According to a report by Reuters, the parties have managed to reach a settlement.

The docket for the case shows a letter about a settlement filed with Judge Naomi Reice Buchwald on Monday – May 15, 2017. The Judge has yet to approve the proposed settlement of which no details have yet been disclosed.

The bondholders are claiming that Libor manipulation has resulted in them getting artificially low returns on excess of $500 billion of dollar-denominated debt whose interest payouts were linked to Libor.

If approved, this would mark another HSBC settlement over similar claims after one was reached in January this year, when the bank agreed to pay $35 million to bring to a close a private US antitrust litigation over the alleged manipulation of the yen Libor and Euroyen Tibor.

Full Content: Reuters

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