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

See all articles by Jordan M. Barry

Jordan M. Barry

University of Southern California Gould School of Law

Brian J. Broughman

Vanderbilt University Law School

Eric C. Chaffee

Case Western Reserve University School of Law

Christoph Henkel

Drake University Law School

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

University of Iowa - College of Law

Charles R. P. Pouncy

Independent

Andrew Verstein

University of California, Los Angeles (UCLA) - School of Law

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 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 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 or http://dx.doi.org/10.2139/ssrn.2839130

Jordan Barry (Contact Author)

University of Southern California Gould School of Law ( email )

699 Exposition Blvd.
Los Angeles, CA 90089
United States

Brian J. Broughman

Vanderbilt University Law School ( email )

131 21st Avenue South
Nashville, TN 37203-1181
United States

Eric C. Chaffee

Case Western Reserve University School of Law ( email )

11075 East Boulevard
Cleveland, OH 44106-7148
United States

Christoph Henkel

Drake University Law School ( email )

27th & Carpenter Sts.
Des Moines, IA 50311
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

University of Iowa - College of Law ( email )

130 Byington Road
Iowa City, IA 52242
United States

HOME PAGE: http://https://law.uiowa.edu/people/christopher-odinet

Charles Pouncy

Independent

Andrew Verstein

University of California, Los Angeles (UCLA) - School of Law ( email )

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