JPMorgan Chase & Co. is set to pay almost a third of a US$1.86 billion settlement to resolve accusations that a dozen big banks conspired to limit competition in the credit-default swaps (CDS) market, Bloomberg reported.
Citing unnamed sources, the report said JPMorgan is paying US$595 million, the lender’s portion of the accord being largely based on the plaintiffs’ measure of market share.
The settlement also enacts reforms making it easier for electronic trading platforms to enter the CDS market, lawyers for the plaintiffs, which include the Los Angeles County Employees Retirement Association, said in a statement 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-US-dollar credit default swap market in violation of US antitrust laws.
Morgan Stanley, Barclays Plc and Goldman Sachs Group Inc. are paying about US$230 million, US$175 million and US$164 million, respectively, the report said.
Credit Suisse Group AG, Deutsche Bank AG and Bank of America Corp. will pay about US$160 million, US$120 million and US$90 million, respectively. BNP Paribas SA, UBS Group AG, Citigroup Inc., Royal Bank of Scotland Group Plc and HSBC Holdings Plc (00005.HK) will pay less than $100 million apiece.
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