UK banks are facing the possibility of large claims for manipulation of financial benchmarks by non-UK customers and counterparties including:
- Foreign exchange
- LIBOR (the London Interbank Offered Rate)
- ISDAfix (which affects interest rate swaps)
This follows heavy fines being imposed on UK and other banks for their participation in the manipulation of these benchmarks. Claims may arise from the losses incurred as a direct effect of this manipulation. Alternatively, it is possible that the contracts might be set aside by the English courts because of fraud or misrepresentation.
There has been successful litigation in the USA, and potential US claimants and those in Europe are now examining whether claims should be made in the English courts over the losses they have suffered. There is also the possibility of claims alleging that the banks operated anti-competitive cartels.