Group of council leaders set to sue Barclays

A GROUP of council leaders in West Yorkshire are set to bring legal action against banking giant Barclays.

The West Yorkshire Combined Authority (WYCA) will meet next week to discuss paying a retainer to legal firm Hausfeld & Co “for legal representation” against the firm.

It is understood to be in connection with loans taken out by local authorities in the mid2000s. These were known as “lender option, borrower option” (LOBO) loans, with many councils locked into paying high interest rates for up to 70 years.

However it was discovered that during this time, the Libor rate – which tracks average interest rates charged by banks – was being manipulated by banks falsely inflating or deflating their rates to make extra profit from trades.

A WYCA spokesperson said: “The West Yorkshire Combined Authority has instructed Hausfeld & Co to issue a protective claim against Barclays in connection with the bank’s involvement in manipulation of the Libor benchmark rate and its impact on the combined authority’s predecessor organisations’ entry into certain LOBO transactions with the Bank.”

The matter will be discussed in private, meaning the press and public will be excluded from the discussions at the meeting next Thursday.

A Hausfeld & Co spokesman said: “I confirm that Hausfeld & Co LLP are acting for West Yorkshire Combined Authority and several other councils who have issued a protective claim against Barclays Bank in connection with its involvement in manipulation of the Libor benchmark rate and its impact on the councils’ entry into certain LOBO loan transactions with the bank.”

Barclays declined to comment on the move from the West Yorkshire leaders.