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Anne Arundel Medical Center will receive more than $580,000 in restitution as part of a $100 million multi-state settlement with Citibank, according to the Maryland Office of the Attorney General.

Following an investigation into fraudulent conduct by major banks involving manipulation of the benchmark interest rate London Interbank Offered Rate, known as LIBOR, the medical center will receive $580,899.04 as part of a $100 million multi-state settlement, a release said.

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LIBOR is an average interest rate set by a panel composed of 16 major banks, including Citibank. The rate is set on a daily basis with each bank submitting confidentially and independently its true and accurate lending rate for the day. This rate serves as a reference for all types of financial transactions.

During 2008, Citibank at times made LIBOR submissions calculated to avoid negative publicity, at the request of Citibank traders lowered or raised the submissions in order to favor the bank in certain financial transactions, the release stated. So Citibank made millions in unjust gains when not-for-profit organizations like Anne Arundel Medical Center entered into financial contracts with Citibank that were based on LIBOR.

Bon Secours Health System based in Marriottsville will receive $1,130,230.15 as part of the settlement, as well.

Three other banks, UBS, Barclays and DeutschBank, have settled with Maryland and the other State Attorneys General to resolve claims of LIBOR manipulation, the release said. The states have collected over $500 million in payments from these banks.

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