NEW YORK, July 28: Six banks including Bank of America, opens new tab and Citigroup, opens new tab agreed to pay $80 million to settle antitrust litigation in New York accusing them of conspiring to rig prices of European government bonds.
A preliminary settlement with Bank of America, Citigroup, Jefferies (JEF.N), opens new tab, NatWest (NWG.L), opens new tab, Nomura (8604.T), opens new tab and UBS (UBSG.S), opens new tab was filed late Friday 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.
Friday's settlements would upon approval end the litigation, with $120 million of settlements. JPMorgan Chase (JPM.N), opens new tab, Natixis, State Street (STT.N), opens new tab and UniCredit (CRDI.MI), opens new tab previously settled for a combined $40 million.
The case is part of more than a decade of litigation in the Manhattan court accusing banks of colluding in various markets including U.S. Treasuries, currencies and commodities, as well as on interest rate benchmarks.
The case is In re European Government Bonds Antitrust Litigation, U.S. District Court, Southern District of New York, No. 19-02601. —Reuters
