🚨 BREAKING NEWS 🚨
Citi, BofA, Goldman, other banks accused of credit default swap antitrust scheme and market manipulation.
(2008 flashbacks anyone?)
— unusual_whales (@unusual_whales) July 1, 2021
New Mexico’s sovereign wealth fund brought a federal antitrust lawsuit claiming Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., and other top financial institutions rigged the credit default swap market by manipulating a key benchmark.
The proposed class action, docketed Thursday, also targets Barclays Plc, BNP Paribas SA, Credit Suisse Group AG, Deutsche Bank AG, JPMorgan Chase & Co., Morgan Stanley, Natwest Group Plc, and three industry groups.
By rigging the “final auction price” used “to value all CDS contracts market-wide at settlement,” the banks have made “billions of dollars in cartel profits at the expense of non-dealer market participants,” according to the complaint filed in the U.S. District Court for the District of New Mexico.