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US: DOJ warned by CFTC of rate-rigging cartel

By  |  September 9, 2014

The US Commodity Futures Trading Commission has reportedly alerted the Department of Justice of a criminal scheme by banks to allegedly manipulate the ISDAfix benchmark.

According to reports, the CFTC says it has evidence that banks colluded to rig the benchmark, which affects trillions of dollars worth of financial products. The CFTC first launched an investigation into the matter in 2012 by sending subpoenas to several major financial institutions, an unnamed source said.

Details regarding which banks are accused by the CFTC of the collusion are unavailable.

The CFTC’s notice to the DOJ comes just days after the Alaska Electrical Pension Fund filed a lawsuit against 13 banks including Bank of America, Citigroup and Barclays of manipulating the ISDAfix benchmark. The UK’s Financial Conduct Authority is also reportedly probing allegations of rate rigging.

Full content: Bloomberg

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