[ by Howard Haykin ] Manipulation of the Libor benchmark rate has not been proven, and is still based on the allegations against a single bank.  Nevertheless, a New York lender has sued a group of large banks on the panel that sets that global interest rate, saying it was cheated out of interest income through alleged rate manipulation. The NYC Lender that filed the lawsuit ... is Berkshire Bank. In its court papers filed 7/25/12 in U.S. District Court in Manhattan, Berkshire Bank stated that a misrepresentation in the referenced U.S. dollar Libor rate on the date on which a loan resets will generally reduce the lender's interest income.  The bank seeks class-action status on behalf of similar lenders.  And NO – Berkshire Bank is not connected to the Oracle of Omaha or its company, Berkshire Hathaway. Berkshire Bank had $854 million in assets at the end of last year, according to its website. It has 10 branches in New York and one in New Jersey.  In its suit, Berkshire Bank states that its borrowers were able to take advantage of artificially low interest rates because of the big banks' "unlawful suppression" of benchmark rates.

"It was not only foreseeable but obvious that by manipulating the rate of U.S. dollar Libor, defendants would impair the interest income received by plaintiff and other lenders providing U.S. dollar Libor-tied loans."

Among the banks named in the suit:  Bank of America Corp, Barclays Plc, JPMorgan Chase & Co., and Citigroup Inc. At least one other U.S. community bank ... - Wisconsin-based Community Bank & Trust of Sheboygan, filed similar legal claims - which may indicate that rate manipulation may turn out to have a broad impact on the global economy.  Yet, CBT filed its suit several months ago.  It pending, as well, in U.S. District Court in Manhattan, and says that that alleged rate rigging had kept its interest margins artificially low. Array of Other Lawsuits. Big banks that participated in setting Libor are already facing an array of Libor lawsuits - filed by some big investors and local governments.  The named banks have filed court papers seeking dismissal of these lawsuits on the basis that plaintiffs failed to show banks acted to restrict competition, even if rates were improperly stated. This latest case is:  Berkshire Bank vs Bank of America Corp and others, Case No. 12-5723, U.S. District Court, Southern District of New York. For further details, go to: [Reuters, 7/30/12].