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Maryland to get $2M from Citibank settlement

FILE - In this Jan. 15, 2015, file photo, a Citibank sign hangs above a branch office in New York. On Tuesday, Jan. 16, 2018, Citigroup Inc. reports financial results. (AP Photo/Mark Lennihan, File)

A group of 45 state attorneys general offices allege Citibank misrepresented the integrity of the LIBOR benchmark to state and local governmental, not-for-profit, private, and institutional trading organizations.. (AP Photo/Mark Lennihan, File)

Forty-five states have reached a $100 million settlement with Citibank for allegedly manipulating U.S. Dollar (USD) LIBOR, an interest rate benchmark which has widespread effect on financial markets and consumers, Maryland Attorney General Brian E. Frosh’s office announced Friday.

Governmental and nonprofit organizations in Maryland with LIBOR-linked swaps and other investment contracts with Citibank will get about $2 million from a $95 million settlement fund. Some of that money will be used to pay for the investigation into Citibank, Frosh’s office said.

The investigation was conducted by a group including 45 state attorneys general offices and led by the Maryland, New York, Connecticut, Massachusetts, California and Illinois offices. The attorneys general allege Citibank misrepresented the integrity of the LIBOR benchmark to state and local governmental, not-for-profit, private, and institutional trading organizations, Frosh’s office said.

“Citibank manipulated the financial system for its own gain and at the expense of Maryland local agencies and non-profits,” Frosh said. “As a result of this settlement, victims will receive compensation for the illegal conduct of one of the world’s largest banks.”


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