MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, July 26, 2012 Fund Giants Probe Extent of Libor Damage to Clients Three fund giants are assessing how clients have been affected by Libor manipulation, and also weigh whether legal action is necessary. Bloomberg reports that BlackRock [profile], Fidelity [profile] and Vanguard [profile], which manage a total of $7 trillion assets, can take cues from Charles Schwab [profile], which filed suit against lenders for artificially suppressing Libor. “On behalf of our clients and shareholders, we have been following developments in the Libor market and the related litigation activity for some time," Vincent Loporchio, Fidelity spokesperson, told Bloomberg said in an emailed statement. "We have noted recent news with interest and continue to evaluate our options.” Meanwhile, BlackRock spokeswoman Bobbie Collins said that "it will be some time before greater clarity emerges," as the Libor issue is complex. According to John Coates, a law professor at Harvard Law School, [litigation on Libor related matters] "has the potential to be the biggest single set of cases coming out of the financial crisis because Libor is built into so many transactions, and Libor is so central to so many contracts. It’s like saying reports about the inflation rate were wrong.” The British Bankers' Association called the Libor "the world's most important number," as it is the basis for pricing securities that include short-term variable rate of return and Eurodollar futures and options pricing and settlement. Printed from: MFWire.com/story.asp?s=40738 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |