Friday, October 2, 2015

Big Banks Agree to Settle Swaps Lawsuit, JP Morgan to pay most in $1.86bn settlement

JPMorgan Chase will pay almost a third of a $1.86B settlement to resolve accusations that a dozen big banks conspired to limit competition in the credit default swaps market, WSJ reports.
JPM reportedly will pay $595M, followed by Morgan Stanley  with $230M, Barclays at $175M, Goldman Sachs  at $164M, Credit Suisse at $160M and Deutsche Bank at $120M; BofA, BNP Paribas, UBS, Citigroup , Royal Bank of Scotland  and HSBC would pay less than $100M each.
The lawsuit brought by a group of investors accused the banks, the International Swaps and Derivatives Association and data provider Markit Group Ltd. of colluding to block competing providers, including exchanges, from entering the market for derivatives called credit-default swaps.The deal would avert a trial and end years of litigation by hedge funds, pension funds, university endowments, small banks and other investors, who sued as a group.

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