Bloomberg News reports Stuart Wall, owner of Opal Property Group Ltd., added the Libor allegations to an existing lawsuit, according to documents filed at a London court in June and released this month. It’s at least the third U.K. case where bank clients have sought damages based on benchmark manipulation.
Revelations that traders tried to manipulate benchmark interest rates have led to regulatory fines of more than $6 billion and lawsuits from clients and counterparties who say they lost out. RBS agreed to pay about $600 million to U.S. and U.K. regulators over Libor-rigging charges, and was among six financial institutions fined a record 1.7 billion euros ($2.2 billion) by the European Union in December.
Wall said RBS should have told him Libor wasn’t being calculated honestly, and should have warned Opal about problems in the commercial mortgage-backed securities market that led to the collapse of a planned finance deal. Opal was unable to pay its debts and placed into administration in March 2013. It is now in liquidation.
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