JPMorgan, Barclays Settle Mexican Bond Rigging Suit

JPMorgan Chase and Barclays will pay US$20.7 million to resolve investors’ claims they conspired to rig the Mexican government bond market, the first of nine banks in the proposed class-action litigation to settle, reported Reuters. 

In a Monday night, June 1, filing with the US District Court in Manhattan, lawyers for the investors said the “ice breaker” settlements could be a catalyst for settlements with the other bank defendants.

These defendants include affiliates of Banco Santander, Bank of America, BBVA, Citigroup, Deutsche Bank, HSBC, and UBS.

JPMorgan is paying US$15 million, and Barclays is paying US$5.7 million. Both denied wrongdoing in agreeing to settle. Neither bank immediately responded on Tuesday to requests for comment.

Investors led by several pension funds accused the defendant banks of operating as a “cartel” from January 2006 to April 2017 by sharing pricing and other transaction data, including through chat rooms, to maximize their profits at investors’ expense.

The private litigation began after Mexico’s antitrust watchdog, the Federal Economic Competition Commission (COFECE), began a probe into possible collusion.

Full Content: Reuters

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