Barclays Agrees to Huge Libor-Related Settlement

A law firm representing a number of claimants in the Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term rate-rigging case that shook the international banking industry announced that it has reached a $120-million Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term with Barclays, one of the main participants in the scandal.

Hausfeld, an international legal firm that specializes in litigation cases, said in a statement that besides the financial compensation, Barclays has agreed to cooperate with the group of plaintiffs, jointly called Over-the-Counter Plaintiffs, in their litigation against other banks that took part in the manipulation practice.

A Four-Year Battle

The law firm’s chairman, Michael D. Hausfeld, commented: “The settlement with Barclays, which comes over four years after the case was first filed, not only represents an important breakthrough in resolving this long-running litigation, it also provides significant monetary recovery and cooperation that will benefit the victims of the banks’ conduct.”

Just last month, Barclays, along with HSBC and RBS, was defeated by another group of plaintiffs, including pension funds, international corporates and hedge funds. The three banks agreed to pay in excess of $900 million to that plaintiff group.

Libor fallout continues to be felt

Barclays was implicated in manipulating Libor four years ago and has since then admitted to wrongdoing of some of its employees and agreed to pay almost $2.5 billion in fines and settlements with UK and US financial market authorities.

After the rate-rigging practice became public, in 2011, a number of organizations and even cities, such as Baltimore, filed lawsuits against some of the world’s biggest banks for deliberately manipulating the London interbank lending rate during the financial crisis.