Mendocino County Sues Over Libor

Mendocino County has filed a lawsuit in U.S. District Court Northern District of California against Bank of America Corp., Barclays Bank PLC, Citigroup Inc. and more than a dozen other banks over manipulation of Libor, a crucial rate that banks use to loan money to each other. Government entities around the world have been filing suits over the manipulation that cost them billions of dollars during the economic meltdown between 2007 and 2011. Eight California entities, including counties and cities have also sued. According to The Press Democrat, Mendocino County may have lost $800,000 on investments between 2008 and 2010 because of Libor manipulation. An estimated 70% of the county’s investment pool, which ranged between $150 million and $220 million, was in Libor-related investments that paid lower returns than they should have.