6 Banks Settle European Bond Price-Fixing Litigation In NY

Six banks, including Bank of America and Citigroup, agreed to pay $80 million to settle antitrust litigation in New York accusing them of conspiring to rig prices of European government bonds, Jonathan Stempel reported for Reuters.

A preliminary settlement with Bank of America, Citigroup, Jefferies, NatWest, Nomura, and UBS was filed late last week in Manhattan federal court and requires a judge's approval.

A preliminary settlement with Bank of America, Citigroup, Jefferies, NatWest, Nomura, and UBS was filed late last week in Manhattan federal court and requires a judge's approval.

Investors led by three public pension funds accused the banks of having colluded, including in online chatrooms, to bid high prices at bond auctions to ensure a dominant market share, and then to sell the bonds at inflated prices to mutual funds, pension funds, insurers, and other investors.

The alleged collusion occurred between 2007 and 2012. All six banks denied wrongdoing in agreeing to settle. The settlements would, upon approval, end the litigation, with $120 million in total settlements.

JPMorgan Chase, Natixis, State Street, and UniCredit previously settled for a combined $40 million.