JPMorgan Pays $1.86b CDS Settlement
World Economy

JPMorgan Pays $1.86b CDS Settlement

JPMorgan Chase & Co. is set to pay almost a third of a $1.86 billion settlement to resolve accusations that a dozen big banks conspired to limit competition in the credit-default swaps market, according to people briefed on terms of the deal.
JPMorgan is paying $595 million, with the lender’s portion of the accord largely based on the plaintiffs’ measure of market share, said the people, who asked not to be identified because the firms haven’t disclosed how they’re splitting costs. The settlement also enacts reforms making it easier for electronic-trading platforms to enter the CDS market, according to a statement Thursday from attorneys for the plaintiffs, which include the Los Angeles County Employees Retirement Association,  Bloomberg reported.
Morgan Stanley, Barclays Plc and Goldman Sachs Group Inc. are paying about $230 million, $175 million and $164 million, respectively, the people said. Plaintiffs’ lawyers disclosed the approximate size of the settlement in Manhattan federal court last month, saying they were still ironing out details. They updated the total Thursday.
The accord averts a trial following years of litigation by hedge funds, pension funds, university endowments, small banks and other investors, who sued as a group. They alleged that global banks–along with Markit Group Ltd., a market-information provider in which the banks owned stakes–conspired to control the information about the multitrillion-dollar credit-default-swap market in violation of US antitrust laws.
Credit Suisse Group AG, Deutsche Bank AG and Bank of America Corp. will pay about $160 million, $120 million and $90 million, respectively, the people said. BNP Paribas SA, UBS Group AG, Citigroup Inc., Royal Bank of Scotland Group Plc and HSBC Holdings Plc also would pay less than $100 million apiece, the people said.
Spokesmen for the banks said the companies had no immediate comment or didn’t immediately respond to messages seeking comment.

Short URL : https://goo.gl/YpUvce
  1. https://goo.gl/FDjfFK
  • https://goo.gl/GA0lNp
  • https://goo.gl/JX53IJ
  • https://goo.gl/oKSFGG
  • https://goo.gl/vtMzhB

You can also read ...

The 2017 “WannaCry” cyber attack demanded affected users wire ransom money via Bitcoin.
You don’t have to be a digital whizz kid to know that the wars...
A woman protests a planned coal-fired plant  in southern Thailand.
Southeast Asian governments are finding themselves caught...
Singapore to Hike GST for First  Time in Decade
Singapore is expected to raise goods and services tax for the...
Malaysia has shown willingness to move towards  a market-oriented mechanism.
Forty-three World Trade Organization members who participated...
South Africa Wants to Increase VAT Rates
With an economic downgrade to junk status, a slowly growing...
62% of Japan Loan Rate  Below 1%
After two years of the Bank of Japan guiding key interest...
Fitch Upgrades Greece
Fitch Ratings raised Greece’s sovereign credit rating by one...
China’s Commerce Ministry says the proposed US measures are groundless.
China said proposed US tariffs on imported steel and aluminum...