Louisiana gets $11M settlement in interest rate manipulation
BATON ROUGE, La. (AP) — Louisiana is receiving $11 million as its share of a multistate settlement with Deutsche Bank over the manipulation of a key benchmark involving global interest rates.
Attorney General Jeff Landry’s office, which was involved in the settlement, says $3 million will go to the Bond Commission and the remaining $8 million to the transportation department.
According to the treasurer’s office, the $3 million will be used to pay down state debt, freeing up general state tax dollars for other spending areas. The $8 million will be available to pay for road construction debt, freeing up gasoline tax dollars to use on other projects.
“Improved roads are critical to growing our economy and Louisiana jobs,” Landry said in a statement Thursday. “That is why I am proud of my office’s work retrieving these funds for our state.”
Forty-five state attorneys general were involved in the investigation and resulting $220 million settlement with Deutsche Bank first announced in October.
Landry’s office said government agencies and nonprofits around the country lost millions of dollars when they made investment decisions without knowing about the manipulation of the benchmark interest rate known as the London Interbank Offered Rate.