California public employee union calls for investigation of JP Morgan Chase, other banks for LIBOR scandal

Fallout from the financial scandal that hit the interest-rate setting measure, known as LIBOR, continues to affect borrowers and investors. Some of them filed lawsuits after the banks’ wrongdoing came to light in 2012, including suits by the city of Baltimore and a group of homeowners. Now, California’s largest public employee union wants the state to investigate JP Morgan Chase and other major banks linked to LIBOR and consider suing to recover billions in lost investment dollars. From Sacramento, FSRN’s Max Pringle reports.

Imagine waking up one day to find your bank account has not only been compromised, but that more than $30,000 in fraudulent checks have been written on it. Then to make matters worse, once things seem to be resolved, another bogus charge is placed on an entirely new account.

This is what happened to Consumerist reader Lisa, who recently received a call from a Chase bank because someone there believed a newly deposited check was a fake.

It was. Then Lisa looked at her Wells Fargo bank statement and found that in a matter of a couple days, a total of $32,526.27 had been drained from her account, putting her more than $30,000 into overdraft.

The Wells website had scans of the 30 scammy checks, which Lisa had obviously not written. The checks were fakes that had been created using her name and account number, but Lisa knew these weren’t…