Utah To Get Part Of $100 Million Barclays Settlement
On Monday, Attorney General Sean Reyes announced that Utah is among 43 states and the District of Columbia that have settled a lawsuit with Barclays Bank over charges that the British bank manipulated LIBOR interest rates.
Government and not-for-profit Utah entities could soon learn whether they will receive a portion of the $100 million settlement after an investigation found that Barclays had colluded with LIBOR submitters to change interest rates. The bank engaged in fraudulent action in order to give the appearance of good financial health and increase earnings from 2007 to 2009.
A claims administrator assigned by the Utah Attorney General’s Office will handle the disbursement of the settlement money. It is not currently known how much of the $100 million will go to Utah. According to Dan Burton, a spokesman with Reyes’ office, those harmed by the LIBOR manipulations will be notified and given the opportunity to opt-in to the settlement. Burton said that a timeline for handling the money has not been set.
LIBOR, or the London Interbank Offered Rate, is used as a benchmark for interest rates on significant financial transactions such as loans, mortgages, and credit cards. Barclays Bank is part of a group of major world banks whose interest rates on loans they give to other banks contributes to LIBOR rates.