US: Goldman Sachs settles bond-rigging lawsuit for $20M

Goldman Sachs agreed to pay US$20 million to resolve claims by investors that it conspired to rig prices of bonds issued by Fannie Mae and Freddie Mac.

The preliminary settlement filed on Thursday night, November 14, in federal court in Manhattan requires a judge’s approval, and is the third in litigation by investors against 16 financial services companies, reported CNBC. 

Deutsche Bank settled for US$15 million and units of Tennessee’s First Horizon National Corp settled for US$14.5 million in September. Both settlements won preliminary court approval in October.

Goldman did not admit wrongdoing, and its settlement requires that it have strong antitrust compliance procedures.

Investors, including Pennsylvania Treasurer Joe Torsella, accused banks of exploiting their market dominance to overcharge for Fannie Mae and Freddie Mac bonds from January 1, 2009, to January 1, 2016, and keeping more profit for themselves.

Full Content: CNBC

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