US Homeowners Launch Class Action Suit Against LIBOR-Manipulating Banks

Tyler Durden's picture

Nearly four years ago, we started a series of articles in which we methodically presented evidence that LIBOR was manipulated. Then, in late June, the biggest (to date) bank conspiracy was exposed, in which it was found beyond a reasonable doubt that at least one, and in many case all (including the BOE and Fed) were if not engaging, then certainly aware of numerous instances when daily USD LIBOR fixing was fudged one way or another for various non-fiduciary, read illegal purposes. When our conspiracy theory was confirmed to be conspiracy fact (as usual), we suggested the following: "Our advice to anyone who had an adjustable rate mortgage in the period between 2005 and today: speak to a lawyer immediately about suing the living feces out of Barclays, and all other banks who crawl out of the woodwork with purported settlements. Because due to their undisputed mark manipulation, it is absolutely safe to say that ARMs, which rely on Libor for interest rate formation, were grossly manipulated by the same idiot traders who left written evidence of their manipulation year after year. Now it is their turn to pay." As of last night, this too has occurred, after several homeowners, aka Adams et al (Southern New York, 12-cv-07461) launched a class action lawsuit against Bank of America and all other LIBOR banks, accusing the defendants of "unjustly enriched themselves" by manipulating the rate, which allowed them to increase the payments by homeowners on adjustable rate loans, and boosting profits.

This is merely the beginning: very soon, as expected (and as confirmed by surging legal fees and rapidly rising, but nowhere near rapidly enough, legal reserves) any and every homeowner will be seeking some form of equitable treatment for being taken advantage of in what until now was seen as an impossible act of mega collusion, for the very same reasons why time after time the sanctity of BLS and other US-sourced data is taken for granted: it just can not happen. Until it does that is, and it is in the interest of some overzealous DA to expose the corruption to its rotten roots.

Form Bloomberg:

The plaintiffs asked for class-action status, a jury trial, cash compensation and an order permanently blocking the banks from rigging Libor. Class-action status allows plaintiffs more leverage in negotiations with defendants. Lead plaintiffs direct the litigation on behalf of the group, determining strategy while usually reaping the largest share of any verdict or settlement.

 

Barclays Plc (BARC), Britain’s second-biggest lender by assets, is the only bank to have settled with regulators over the rigging of Libor. The London-based company paid a record 290 million pound ($469 million) fine in June. Chief Executive Officer Robert Diamond and Chairman Marcus Agius resigned in the aftermath.

Those wishing to enjoing the class action lawsuit are urged to write to the Plaintiff's attorney:

John Walter Sharbrough
John W. Sharbrough, III, PC
114 Eaton Square
Mobile, AL 36608
(251) 432-1441
Fax: (251) 432-5297
Email: john@sharbroughlaw.com

Full complaint presented below in its entirety.