Citigroup, Deutsche, HSBC agree Libor settlement

Citigroup Inc, Deutsche Bank AG and HSBC Holdings Plc have agreed to pay a combined $132 million to settle a U.S. class action brought by futures traders accusing them of manipulating the Libor benchmark interest rate, according to a U.S. court filing, Reuters reported on Thursday.

HSBC will pay $18.5 million as part of a combined USD132.0 million settlement being paid by three global banks including the FTSE 100 giant. Citigroup Inc will pay $33.4 million, and Deutsche Bank AG will pay $80 million. The money would go into a settlement fund to compensate those who lost money because of the alleged manipulation.

The settlement comes after a US class action was brought by futures traders accusing the banks of manipulating the Libor, or London Interbank Offered Rate, benchmark interest rate, according to a US court filing issued on Wednesday.

The settlement proceeds would be distributed to proposed classes consisting of anyone who traded in Eurodollar futures on exchanges, including the Chicago Mercantile Exchange, between January 1, 2003 and May 31, 2011 the filing explained.

"We are pleased the matter is resolved," said HSBC spokesman Rob Sherman. Citi and Deutsche Bank could not immediately be reached for comment. A lawyer for the plaintiffs declined to comment.

The current settlement follows a string of regulatory fines across the world against banks which has cost them billions of US dollars.