Bloomberg reported that 12 Wall Street’s banks have agreed to $1.87 billion settlement over allegations that they conspired to rig the market for credit derivatives.
In 2013, the pension funds of the US, Denmark, and other countries alleged that a dozen US banks along with Markit Group Ltd. and the International Swaps and Derivatives Association conspired to control the information about the multitrillion-dollar credit default swap market in violation of the US antitrust laws. Besides, the lawsuit was issued over the dealers’ refusal to cooperate with the CMDX developers. According to the Bank for International Settlements, the credit default swaps market was worth $16 trillion as of the end of 2014. However, experts at Thomson Reuters provided an estimate of $21 trillion.
The defendant banks are: Bank of America Corp., Barclays PLC, BNP Paribas SA, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., HSBC Holdings PLC, J.P. Morgan Chase & Co., Morgan Stanley, Royal Bank of Scotland Group PLC, and UBS Group AG.
Daniel Brockett, a lawyer for the group, told a judge in Manhattan federal court that the sides need seven to ten more days to iron out some details.
