DORAL COLLAPSE – US SUES 16 BANKS

BENGALURU: A US regulator on Tuesday filed a lawsuit against 16 US and international banks alleging they had manipulated Libor, which is a series of interest-rate benchmarks, leading to the collapse of Puerto Rico’s Doral Bank. The Federal Deposit Insurance Corp, which brought the suit in its capacity as receiver for Doral Bank, alleged the rate rigging harmed Doral by causing substantial losses with regard to its loan portfolio and derivative holdings. The suit is the latest in a long line of lawsuits in the US District Court in Manhattan targeting the alleged rigging by banks of one interest rate benchmark, market or commodity or another. – Reuters