Nine of the world’s biggest banks are paying a hefty $46 million to settle a lawsuit accusing them of manipulating a massive $465.9 trillion market.
Banks Accused of Conspiring to Keep Market Antiquated
The lawsuit, filed by investors eight years ago, claims that the banks conspired to keep the interest rate swap market inefficient and outdated. This allowed them to charge higher fees and control the market.
Investors Say Banks Blocked Competition
According to the lawsuit, the banks actively blocked the entry of electronic exchanges into the market, forcing investors to trade with them directly. This gave the banks a significant advantage and allowed them to rake in “tremendous profits.”
Banks Deny Wrongdoing but Agree to Settle
The banks, including JPMorgan Chase, Bank of America, Goldman Sachs, and others, have denied any wrongdoing. However, they have agreed to settle the lawsuit for a combined $46 million.
Credit Suisse Previously Settled for $25 Million
This settlement comes after Credit Suisse, which has since been acquired by UBS, agreed to pay $25 million to settle its part of the lawsuit in 2022.
Judge’s Approval Still Needed
The settlement still needs to be approved by a U.S. District Judge. If approved, each bank will pay $46 million to settle the litigation.
