The NCUA filed an antitrust lawsuit Sept. 23 against 13international banks involved in the Libor rate scandal.

The manipulation of Libor in 2007 and 2008 resulted in a loss ofinvestment income at the five failed corporate credit unions,because they invested in Libor-indexedassets such as floating-rate securities and fixed-ratebonds with attached interest rate swaps.

Bank employees reported artificially low rates, which resultedin underpayment on the assets.

The suit was filed in federal court in Kansas, where the failedU.S. Central Federal Credit Union was located. The NCUA saidWestern Corporate Federal Credit Union, Members United FederalCredit Union, Southwest Corporate Federal Credit Union andConstitution Corporate Federal Credit Union also suffered losses asa result of the scheme.

 “Some firms were manipulating international interestrates in a way that cost the five corporates to lose millions ofdollars. Just as we are doing in our other suits, we are seeking tohold responsible parties accountable for their actions,” NCUA BoardChairman Debbie Matz said.

The NCUA claims the bank defendants individually andcollectively gave false information to benefit their investmentsthat were tied to Libor, reduce their borrowing costs, deceive themarketplace as to the true state of their creditworthiness anddeprive investors of interest rate payments.

In addition to the lawsuits, banks involved in scheme havebeen underinvestigation by authorities in the United States andthe United Kingdom.

The investigating authorities have so far collectedapproximately $2.5 billion in penalties from three firms: UBS, theRoyal Bank of Scotland and Barclays. More than 40 suits altogetherhave been filed.

The NCUA said it would apply any proceeds from the suit towardthe corporate stabilization fund.