What is LIBOR?
The London Interbank Offered Rate (LIBOR) is the interest rate at which banks lend to each other, and is set every business day, covering ten currencies and 15 timespans, from overnight to a year, based on the level at which banks were lending to each other on the previous day.
In June 2012, it emerged that member banks had been manipulating their submissions to LIBOR, deliberately understating their borrowing costs in order to mislead consumers, businesses and global markets about their financial position.
The major high street banks have already been hit with multi-million pound litigations for their role in the scandal, and now the businesses that have fallen victim to LIBOR manipulation may be able to launch their own lawsuits against the banks to recoup damages.
How can LIBOR affect businesses?
LIBOR can affect businesses of all sizes as it used as a reference rate for the financial products that these businesses may have been sold by the banks, such as mortgages and loans. If the banks have been manipulating their LIBOR submissions, then this will have a negative effect on the businesses who have been lending from them based on those rates.
If your business has been affected by the LIBOR scandal, and you think you may have a case for claiming damages against your high street bank, please get in touch today by calling 0203 816 9303 and a member of the Stephensons legal team can advise you on whether you have a valid case.