Arizona Attorney General Reaches $100M Settlement With Citibank
Arizona Attorney General Mark Brnovich has announced a $100 million settlement with Citibank. This resolves allegations that Citibank manipulated an interest rate that affects financial instruments worth trillions of dollars.
Citibank fraudulently manipulated the standard rate that banks charge each other for short term loans, the so-called LIBOR, according to a press release from the Attorney General’s Office. More than $2 million in restitution will be distributed to Arizona nonprofits that were affected.
Nonprofit organizations in Arizona and throughout the United States were defrauded of millions of dollars when they entered into interest rate swaps and other investment instruments with the company.
Citibank is the third of several banks under investigation by the state attorneys general to resolve the claims against it.