Freddie Mac sued Bank of America, UBS AG, JPMorgan Chase & Co. and a dozen other banks over alleged manipulation of the London interbank offered rate, saying the mortgage financier suffered substantial losses as a result of the banks’ conduct.
Government-owned Freddie Mac accuses the banks of acting collectively to hold down the U.S. dollar LIBOR to “hide their institutions’ financial problems and boost their profits,” according to a complaint filed in federal court in suburban Alexandria, Va. “Defendants’ fraudulent and collusive conduct caused USD LIBOR to be published at rates that were false, dishonest, and artificially low,” Richard Leveridge, a lawyer for Freddie Mac, said in the complaint, made public Tuesday.
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