Citibank to pay $100M to settle fraud allegations

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BOSTON — Citibank has agreed to pay $100 million to settle allegedly fraudulent conduct relating to the manipulation of LIBOR interest rates that misled governmental and nonprofit entities in Massachusetts and across the nation, according to Attorney General Maura Healey. A multistate investigation has recovered more than $400 million from banks for LIBOR violations.The investigation, conducted by Healey and 42 state attorneys general, revealed that Citibank allegedly misrepresented the integrity of LIBOR rates, which are benchmark rates that banks charge each other on short-term loans, to certain trading counter parties.Eligible Massachusetts governmental and nonprofit entities are being notified of the opportunity to receive funds under the settlement. The balance of the $100 million multi-state settlement fund that is not distributed to eligible investors will be paid to the multistate group of investigating states. The coalition of attorneys general includes Connecticut and New York.

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