US homeowners begin Libor legal action

15 October 2012

A dozen major global banks are facing legal action from homeowners in the US due to their supposed involvement in the Libor manipulation scandal.

This group of people have decided to file a law suit against financiers including Barclays, UBS and the Bank of America on the basis that this malpractice directly resulted in their mortgage payments going up, the Financial Times reports.

Previously, municipalities and investors have taken similar courses of action in order to pursue redress, but this represents the first time homeowners have done so.

According to the news source, the claimants - of which there could be as many as 100,000 - allege that because traders at these institutions were offered incentives to rig the interbank lending figure, this meant their home loans cost more than they should have from 2000 to 2009.

Indeed, one of the people involved, pensioner Annie Bell Adams, had her home repossessed due to this issue because she could not afford her repayments.

By Claire Archer

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