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Amicus Curiae Brief in Gelboim v. Bank of America (Libor Manipulation Litigation) on Behalf of Financial Markets Law Professors in Support of Plaintiffs-Appellants

32 Pages Posted: 16 Sep 2016 Last revised: 20 Jan 2017

Jordan M. Barry

University of San Diego School of Law

Brian J. Broughman

Indiana University Maurer School of Law

Eric C. Chaffee

University of Toledo - College of Law

Christoph Henkel

Mississippi College - School of Law

Robert C. Hockett

Cornell University - Law School

Michael P. Malloy

University of the Pacific - McGeorge School of Law

Peter Marchetti

Texas Southern University - Thurgood Marshall School of Law

Christopher K. Odinet

Southern University Law Center; University of Iowa - College of Law

Charles R. P. Pouncy

Florida International University College of Law

Andrew Verstein

Wake Forest University School of Law; University of Chicago Law School

Date Written: September 27, 2016

Abstract

This amicus brief, filed with the Second Circuit Court of Appeals in Gelboim v. Bank of America (LIBOR Manipulation Litigation), primarily aims to help the Court by providing relevant background information. Many of the plaintiffs in this case are bringing antitrust claims based on defendant banks' alleged collusion while selling plaintiffs over-the-counter derivatives. To evaluate these plaintiffs’ allegations, one must understand the nature of these derivative transactions, the economics of the over-the-counter derivatives market, and the specific role that the London Interbank Offer Rate (“LIBOR”) plays in that market. This brief provides that information.

With this background in place, it becomes clear that these plaintiffs have properly alleged an antitrust injury. Plaintiffs allege that defendants, who controlled the over-the-counter derivatives market, conspired to manipulate LIBOR in order to increase their profits in the over-the-counter derivatives market. Plaintiffs allege that they, in their capacity as defendants’ customers in the over-the-counter derivatives market, suffered an injury as a result of defendants’ collusive LIBOR-setting behavior. Taking plaintiffs’ allegations as true, this is a classic antitrust injury.

Accordingly, this court should reverse the district court’s opinion and remand for further proceedings.

Keywords: LIBOR, London Interbank Offer Rate, LIBOR Manipulation, antitrust, financial markets, derivatives, derivatives markets, OTC derivatives, OTC derivatives markets, over-the-counter derivatives, over-the-counter derivatives markets, antitrust injury, Bank of America, Gelboim, amicus, corporate finance

JEL Classification: G00, G12, G21, G23, K21, L41

Suggested Citation

Barry, Jordan M. and Broughman, Brian J. and Chaffee, Eric C. and Henkel, Christoph and Hockett, Robert C. and Malloy, Michael P. and Marchetti, Peter and Odinet, Christopher K. and Pouncy, Charles R. P. and Verstein, Andrew, Amicus Curiae Brief in Gelboim v. Bank of America (Libor Manipulation Litigation) on Behalf of Financial Markets Law Professors in Support of Plaintiffs-Appellants (September 27, 2016). Florida International University Legal Studies Research Paper No. 15-37; Cornell Legal Studies Research Paper No. 16-40; Mississippi College School of Law Research Paper No. 2016-08; San Diego Legal Studies Paper No. 16-231; University of Toledo Legal Studies Research Paper No. 2016-05; Indiana Legal Studies Research Paper No. 355. Available at SSRN: https://ssrn.com/abstract=2839130

Jordan Barry (Contact Author)

University of San Diego School of Law ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States

Brian J. Broughman

Indiana University Maurer School of Law ( email )

211 S. Indiana Avenue
Bloomington, IN 47405
United States

Eric C. Chaffee

University of Toledo - College of Law ( email )

2801 W. Bancroft Street
Toledo, OH 43606
United States

Christoph Henkel

Mississippi College - School of Law ( email )

151 East Griffith Street
Jackson, MS 39201
United States

Robert C. Hockett

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

Michael P. Malloy

University of the Pacific - McGeorge School of Law ( email )

3200 Fifth Avenue
Sacramento, CA 95817
United States

Peter Marchetti

Texas Southern University - Thurgood Marshall School of Law ( email )

3100 Cleburne Street
Houston, TX 77004
United States
617-270-3143 (Phone)

Christopher K. Odinet

Southern University Law Center ( email )

P.O. Box 9294
Baton Rouge, LA 70813
United States
225-771-4900 (Phone)

HOME PAGE: http://www.sulc.edu

University of Iowa - College of Law ( email )

Melrose and Byington
Iowa City, IA 52242
United States

Charles Pouncy

Florida International University College of Law ( email )

11200 SW 8th St.
RDB Hall
Miami, FL 33199
United States
305 348 7485 (Phone)

Andrew Verstein

Wake Forest University School of Law ( email )

P.O. Box 7206
Winston-Salem, NC 27109
United States
3367585433 (Phone)

HOME PAGE: http://law.wfu.edu/faculty/profile/verstea/

University of Chicago Law School ( email )

1111 E. 60th St.
Chicago, IL 60637
United States

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