June 16 (UPI) -- Citibank settled a lawsuit filed by attorneys general in 42 states for $100 million after an investigation found the bank manipulated Libor, a benchmark interest rate that helps set lending rates globally.
New York Attorney General Barbara Underwood announced the settlement on Friday, saying Citibank made millions of dollars of gains from its "fraudulent conduct."
"Our office has zero tolerance for fraudulent or manipulative conduct that undermines our financial markets," Underwood said. "Financial institutions have a basic responsibility to play by the rules -- and we will continue to hold those accountable who don't."
Governmental and not-for-profit entities who have investment contracts with Citibank will be notified if they are eligible to receive part of the settlement funds.
Citibank is the third bank that settled with state attorneys general for illegally influencing the Libor, following Barclays and Deutsche Bank, which have been fined $420 million collectively.