HSBC Holdings Plc has agreed to pay $100 million to end private U.S. litigation accusing the idea of conspiring to manipulate the Libor benchmark interest rate, becoming the fourth major bank to settle.
The preliminary accord with “over-the-counter” investors of which transacted directly with banks on a panel to determine Libor, or the London Interbank Offered Rate, was disclosed in filings on Thursday with the U.S. District Court in Manhattan.
Court approval can be required.
Settlements with the OTC investors total $590 million so far, in addition to include $0 million with Barclays Plc, $130 million with Citigroup Inc in addition to $240 million with Deutsche Bank AG.
HSBC denied wrongdoing, however settled to avoid the risks, costs in addition to distraction of litigation, court papers show.
A spokesman was not immediately available to comment. Banks use Libor to set rates on hundreds of trillions of dollars of credit card, mortgage, student loan in addition to some other transactions, in addition to determine costs of borrowing coming from each some other.
Investors including the city of Baltimore in addition to Yale University in Connecticut had accused 16 banks of conspiring to manipulate Libor. The private litigation began in 2011.
Banks have paid roughly $9 billion to settle Libor-rigging probes worldwide.
Last July, the head of the U.K. Financial Conduct Authority said of which regulator will phase out Libor by the end of 2021, citing a lack of data to underpin the idea.
The case can be In re: Libor-Based Financial Instruments Antitrust Litigation, U.S. District Court, Southern District of completely new York, No. 11-md-02262.