1 00:00:00,080 --> 00:00:02,880 Speaker 1: Now it's time for our daily Bloomberg Law Brief, exploring 2 00:00:03,000 --> 00:00:05,120 Speaker 1: legal issues in the news, brought to you by the 3 00:00:05,160 --> 00:00:09,879 Speaker 1: American Arbitration Association, International Trade or Business Dispute Resolve Faster 4 00:00:09,960 --> 00:00:13,160 Speaker 1: with the International Center for a Dispute Resolution, the leader 5 00:00:13,160 --> 00:00:16,360 Speaker 1: in alternative dispute resolution around the world i c d 6 00:00:16,600 --> 00:00:19,400 Speaker 1: R dot org. Today, Bloomberg Law host Jun Grosso and 7 00:00:19,400 --> 00:00:21,919 Speaker 1: Greg Stewart discussed why the U. S. Supreme Court turned 8 00:00:21,920 --> 00:00:25,120 Speaker 1: away an appeal by several large banks refusing to stop 9 00:00:25,160 --> 00:00:28,840 Speaker 1: anti trust lawsuits that accused them of conspiring to regular libor. 10 00:00:28,960 --> 00:00:32,160 Speaker 1: They speak with Robert Hackett, a professor at Cornell University 11 00:00:32,240 --> 00:00:35,600 Speaker 1: Law School, and Jennifer Ree, a senior litigation analyst for 12 00:00:35,720 --> 00:00:40,360 Speaker 1: Bloomberg Intelligence. Bob, what were the banks arguing in the 13 00:00:40,440 --> 00:00:43,600 Speaker 1: Supreme Court appeal and that they actually have a realistic 14 00:00:43,640 --> 00:00:46,920 Speaker 1: shot at getting the Supreme Court to take up the case? Yeah, 15 00:00:46,960 --> 00:00:48,480 Speaker 1: so I think it was sort of a hail mary 16 00:00:48,520 --> 00:00:50,839 Speaker 1: play from the front from the very beginning. Um, And 17 00:00:51,040 --> 00:00:53,600 Speaker 1: the reason is this, there's certain very important, as you know, 18 00:00:53,680 --> 00:00:57,120 Speaker 1: benchmarks and industries that are used by the broader markets 19 00:00:57,200 --> 00:00:59,480 Speaker 1: on a daily basis. Right to determine what how to 20 00:00:59,600 --> 00:01:03,600 Speaker 1: price various transactions that they engage in. UH And unfortunately, 21 00:01:03,720 --> 00:01:06,080 Speaker 1: or maybe for better or worse, it is inevitably the 22 00:01:06,080 --> 00:01:08,399 Speaker 1: case that a lot of these important benchmarks and the 23 00:01:08,400 --> 00:01:11,600 Speaker 1: indices are essentially determined through the trading activities of a 24 00:01:11,680 --> 00:01:16,039 Speaker 1: few irrelatively few, very large players. Lib Or, which of 25 00:01:16,080 --> 00:01:18,959 Speaker 1: course is as an interest rates, the benchmark is one 26 00:01:19,000 --> 00:01:21,920 Speaker 1: of those. It's essentially determined by the transactions of a 27 00:01:21,959 --> 00:01:24,640 Speaker 1: relatively small number of banks. Now, what that means is 28 00:01:24,680 --> 00:01:28,040 Speaker 1: that it is inherently subject to the possibility of anti 29 00:01:28,080 --> 00:01:31,760 Speaker 1: trust abuse, and if the banks that do set that 30 00:01:31,840 --> 00:01:34,920 Speaker 1: rate engage in any kind of practice that looks to 31 00:01:34,959 --> 00:01:38,240 Speaker 1: be manipulative, it will be virtually per se at an 32 00:01:38,240 --> 00:01:40,640 Speaker 1: anti trust violation. Jennifer, can you tell us a little 33 00:01:40,640 --> 00:01:43,959 Speaker 1: bit more about what the banks are accused of doing here. 34 00:01:44,200 --> 00:01:48,080 Speaker 1: The conduct the plaintiffs claim started sometime around two thousand seven, 35 00:01:48,560 --> 00:01:51,440 Speaker 1: and what they're claiming is that the banks they suppressed 36 00:01:51,480 --> 00:01:54,000 Speaker 1: the library rate, the ultimate librar rate, because they falsely 37 00:01:54,040 --> 00:01:57,040 Speaker 1: reported their own borrowing rates. What the plaintiffs are claiming 38 00:01:57,080 --> 00:02:00,360 Speaker 1: is that they colluded to falsely report their rate, their 39 00:02:00,400 --> 00:02:02,920 Speaker 1: own borrowing rate, which is, you know, what they're reporting 40 00:02:03,040 --> 00:02:06,080 Speaker 1: as a panel to get library and that then suppressed 41 00:02:06,080 --> 00:02:10,840 Speaker 1: the library rate, and as Jennifer Rhea, Senior litigation analyst 42 00:02:10,880 --> 00:02:14,160 Speaker 1: for Bloomberg Intelligence, and Robert Hawkeett, a professor at Cornell 43 00:02:14,280 --> 00:02:17,440 Speaker 1: University Law School, speaking with Bloomberg Law host during Grosso 44 00:02:17,520 --> 00:02:20,320 Speaker 1: and Greg's Store. You can listen to Bloomberg Law weekdays 45 00:02:20,320 --> 00:02:23,880 Speaker 1: at one pm Wall Street Time here on Bloomberg Radio Now. 46 00:02:23,880 --> 00:02:26,440 Speaker 1: Among the top legal stories from Bloomberg Law, the US 47 00:02:26,520 --> 00:02:30,040 Speaker 1: government has filed an anti trust lawsuit against the biggest 48 00:02:30,080 --> 00:02:33,400 Speaker 1: maker of mobile phone chips. The Federal Trade Commission alleges 49 00:02:33,480 --> 00:02:37,240 Speaker 1: that Qualcom forced Apple to use its tips exclusively in 50 00:02:37,280 --> 00:02:40,799 Speaker 1: return for lower licensing fees. Qualcolm says it will fight 51 00:02:40,800 --> 00:02:43,720 Speaker 1: the charges, which it says seek to advance the interest 52 00:02:43,960 --> 00:02:47,240 Speaker 1: of mobile phone makers. Deutsche Bank has resolved one of 53 00:02:47,240 --> 00:02:50,519 Speaker 1: its biggest litigation risks. The bank reached a final settlement 54 00:02:50,520 --> 00:02:53,280 Speaker 1: with the US Justice Department over the way it handled 55 00:02:53,280 --> 00:02:56,679 Speaker 1: mortgage backed securities before two thousand eight. Deutsche Bank is 56 00:02:56,680 --> 00:02:59,519 Speaker 1: agreed to pay seven point two billion dollars and admit 57 00:03:00,040 --> 00:03:03,560 Speaker 1: that it misled investors. In South Korea, a special prosecutor 58 00:03:03,600 --> 00:03:07,400 Speaker 1: is arguing why the Samsung's air apparent should be arrested 59 00:03:07,800 --> 00:03:11,240 Speaker 1: in an influence peddling scandal. J Y Lee is being 60 00:03:11,280 --> 00:03:14,560 Speaker 1: investigated for bribery, embezzlement, and perjury. It's part of the 61 00:03:14,600 --> 00:03:17,480 Speaker 1: scandal that led to the impeachment of South Korea's president. 62 00:03:18,200 --> 00:03:20,400 Speaker 1: And that's this morning's Bloomberg Law Brie. If you can 63 00:03:20,400 --> 00:03:22,920 Speaker 1: find more legal news at Bloomberg Law dot com and 64 00:03:22,960 --> 00:03:26,880 Speaker 1: Bloomberg BNA dot com. Attorneys will find exceptional legal research 65 00:03:26,919 --> 00:03:30,120 Speaker 1: and business development tools there as well. Visit Bloomberg Law 66 00:03:30,160 --> 00:03:33,359 Speaker 1: dot com and Bloomberg b NA dot com for more information.