Anne Arundel Medical Center Receives $580K In Citibank Settlement

ANNAPOLIS, MD — Anne Arundel Medical Center will receive $580,899.04 and Bon Secours Health System will receive $1,130,230.15 in restitution as part of a $100 million multi-state settlement with Citibank following an investigation into fraudulent conduct by major banks involving the manipulation of the LIBOR benchmark interest rate.

LIBOR, which stands for London Interbank Offered Rate, is a benchmark interest rate that affects financial instruments worth trillions of dollars and has a widespread impact on global markets and ordinary consumers. The rate is an average interest rate of the rate a panel composed of 16 major banks will lend money to one another and is set on a daily basis with each bank submitting confidentially and independently its true and accurate lending rate for that day.

As a result of its fraudulent conduct, Citibank made millions in unjust gains when not-for-profit organizations like Anne Arundel Medical Center and Bon Secours entered into financial contracts with Citibank that were based on LIBOR without knowing that Citibank and other banks were manipulating LIBOR submissions.

Citibank is one of four of the LIBOR-setting panel banks that has settled with Maryland and other state attorneys general to resolve claims of LIBOR manipulation, including UBS, Barclays and DeutschBank. The states have collected more than $500 million in payments from these banks, almost all of which has been or will be distributed to state and local government entities and not for profits harmed by the banks wrongful conduct.