Fannie Mae Sues Big Banks
RENEE MONTAGNE, HOST:
NPR's business news begins with a Fannie Mae lawsuit.
Yesterday, that government-backed mortgage lender sued nine of the world's largest banks, including Bank of America and JPMorgan Chase. The lawsuit contends that by manipulating the interest rate banks use to lend money to each other - a rate called LIBOR - the banks caused Fannie Mae to lose about $800 million.
Four of the European banks named in the lawsuit have already admitted to wrongdoing over LIBOR manipulation, and paid fines of over $3.6 billion to U.S. and European authorities.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.