We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Schwab's Claims Against Banks for Libor Manipulation Revived
Read MoreHide Full Article
The Charles Schwab Corporation (SCHW - Free Report) along with some of its mutual funds have successfully convinced the 2nd U.S. Circuit Court of Appeals in Manhattan to revive the lawsuit, which was filed against 17 banks and financial institutions, alleging them of manipulating the benchmark Libor interest rate.
The London Interbank Offered Rate, popularly known as Libor, is used by banks as a benchmark rate to set the interest rates for various financial instruments and is also the average rate at which major banks borrow money from each other.
Schwab claims that the banks had suppressed the Libor rates between August 2007 and May 2010, because of which its mutual funds that bought floating-rate debt during that period earned lower returns.
Talking in favor of Schwab, Circuit Judge Gerard Lynch recently said that he disagreed with the decision of a lower court judge made in October 2015, who had dismissed Schwab’s claims and hence the appeals court has remanded the case for further proceedings.
On Friday, Lynch, in his 64-page decision, said that District Judge Naomi Reice Buchwald was "wrong to assume, at the pleading stage, that Schwab was not harmed by, and may have even benefitted from, Libor manipulation."
Lynch also said that Buchwald was incorrect in concluding that she did not have jurisdiction over various claims made by Schwab under California law.
Schwab is seeking damages for $665 billion worth of transactions relating to these floating-rate instruments, which includes over $40 billion of debt issued by finance companies like Bank of America Corp. (BAC - Free Report) , Citigroup Inc. (C - Free Report) , Credit Suisse Group AG , Deutsche Bank AG (DB - Free Report) , HSBC Holdings plc, JPMorgan Chase & Co., Royal Bank of Canada, The Royal Bank of Scotland Group plc, UBS Group AG and a few others.
Schwab’s shares have gained 32.9% in the past year, outperforming 21.5% growth of the industry.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Schwab's Claims Against Banks for Libor Manipulation Revived
The Charles Schwab Corporation (SCHW - Free Report) along with some of its mutual funds have successfully convinced the 2nd U.S. Circuit Court of Appeals in Manhattan to revive the lawsuit, which was filed against 17 banks and financial institutions, alleging them of manipulating the benchmark Libor interest rate.
The London Interbank Offered Rate, popularly known as Libor, is used by banks as a benchmark rate to set the interest rates for various financial instruments and is also the average rate at which major banks borrow money from each other.
Schwab claims that the banks had suppressed the Libor rates between August 2007 and May 2010, because of which its mutual funds that bought floating-rate debt during that period earned lower returns.
Talking in favor of Schwab, Circuit Judge Gerard Lynch recently said that he disagreed with the decision of a lower court judge made in October 2015, who had dismissed Schwab’s claims and hence the appeals court has remanded the case for further proceedings.
On Friday, Lynch, in his 64-page decision, said that District Judge Naomi Reice Buchwald was "wrong to assume, at the pleading stage, that Schwab was not harmed by, and may have even benefitted from, Libor manipulation."
Lynch also said that Buchwald was incorrect in concluding that she did not have jurisdiction over various claims made by Schwab under California law.
Schwab is seeking damages for $665 billion worth of transactions relating to these floating-rate instruments, which includes over $40 billion of debt issued by finance companies like Bank of America Corp. (BAC - Free Report) , Citigroup Inc. (C - Free Report) , Credit Suisse Group AG , Deutsche Bank AG (DB - Free Report) , HSBC Holdings plc, JPMorgan Chase & Co., Royal Bank of Canada, The Royal Bank of Scotland Group plc, UBS Group AG and a few others.
Schwab’s shares have gained 32.9% in the past year, outperforming 21.5% growth of the industry.
Currently, Schwab carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>