Fannie Mae Sues Big Banks

Government-backed mortgage lender Fannie Mae sued nine of the world's largest banks Thursday, including Bank of America and JPMorgan Chase. The lawsuit contends that by manipulating the interest rate banks use to lend money to each other, the banks caused Fannie Mae to lose about $800 million.

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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.

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