PHOENIX — A group of 42 state attorneys general has reached a $100 million settlement with Citibank over allegations of fraudulently manipulating the London Interbank Offered Rate (LIBOR) which impacts trillions of dollars in financial instruments' worth as well as the global market.
Arizona Attorney General Mark Brnovich recently announced the settlement which includes about $2.75 million in restitution for his state's nonprofits which have been impacted.
"Nonprofit organizations in Arizona and throughout the U.S. were defrauded of millions of dollars when they entered into interest rate swaps and other investment instruments with Citibank without knowing that Citibank and other banks on the U.S. dollar (USD)-LIBOR-setting panel were manipulating LIBOR and colluding with other banks to do so," the Arizona Attorney General's Office said in a statement.
According to the Attorney General's Office, those nonprofits with LIBOR-linked swaps will receive a notification if they are eligible to receive a distribution from a settlement fund of $95 million. The remaining settlement funds will be used to cover the costs of the investigation and "other uses consistent with state laws" the Attorney General's Office said.
Citibank is one several USD-LIBOR-setting panel banks that are under investigation by the state attorneys general, according to the Arizona Attorney General's Office.