New York-based Berkshire Bank has filed a lawsuit against 21 banks for damages from the alleged manipulation of the London Interbank Offered Rate (LIBOR).
According to combined media reports, Berkshire is seeking undisclosed compensation and punitive damages as part of its lawsuit, and it is also asking for the right to represent other financial institutions in a potential group lawsuit. Among the banks named in the lawsuit are Bank of America Corp., Barclays Plc, JPMorgan Chase & Co. and Citigroup Inc.
‘It was not only foreseeable but obvious that by manipulating the rate of U.S. dollar LIBOR, defendants would impair the interest income received by plaintiff and other lenders providing U.S. dollar LIBOR-tied loans,’ Berkshire said in its lawsuit.
Berkshire Bank has 11 branches in the metropolitan New York market and $854 million in assets. Despite its similar name, it is not affiliated with Warren Buffett's Berkshire Hathaway.
