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Citigroup to pay $130 million to end Libor rigging lawsuit

ReutersNEW YORK (Reuters) — Citigroup Inc. has agreed to pay $130 million to settle private U.S. antitrust litigation accusing it of conspiring with rivals to manipulate the Libor benchmark interest rate.

The bank is the second to resolve claims by so-called “over-the-counter” investors that transacted directly with banks on a panel to determine Libor, according to filings late Monday with the U.S. District Court in Manhattan.

Barclays Plc, the British bank, reached a similar settlement in November 2015 for $120 million.

Citigroup spokeswoman Danielle Romero-Apsilos said the New York-based bank was pleased to resolve the matter. Court approval is required. Citigroup did not admit wrongdoing.

Banks use Libor, or the London Interbank Offered Rate, to set rates on hundreds of trillions of dollars of credit card, mortgage, student loan and other transactions, and to determine the cost of borrowing from one another.

Investors including the city of Baltimore and Yale University in New Haven, Connecticut had accused 16 banks of conspiring to manipulate Libor in the private litigation, which began in 2011.

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