Date
22 July 2017
HSBC and 13 other banks have been accused of rigging an interest rate benchmark used in the US$483 trillion derivatives market. Photo: AFP
HSBC and 13 other banks have been accused of rigging an interest rate benchmark used in the US$483 trillion derivatives market. Photo: AFP

HSBC, UBS settle US rate-rigging case; payout tops US$408 mln

HSBC Holdings Plc and UBS Group AG have each agreed to pay US$14 million to settle private US litigation accusing them of rigging an interest rate benchmark used in the US$483 trillion derivatives market, Reuters reports.

The preliminary settlements were disclosed in filings on Tuesday in the US District Court in Manhattan and require a judge’s approval.

They boost the total payout from 10 settling banks to US$408.5 million. HSBC and UBS have denied wrongdoing.

Several pension funds and municipalities had accused 14 banks of conspiring to rig the ISDAfix benchmark for their own gain from at least 2009 to 2012.

Companies and investors use ISDAfix to price swaps transactions, commercial real estate mortgages and structured debt securities.

The eight earlier settlements have won preliminary approval.

Payouts include US$56.5 million from Goldman Sachs Group Inc.; US$52 million from JPMorgan Chase & Co.; US$50 million from each of Bank of America Corp., Credit Suisse Group AG, Deutsche Bank AG and Royal Bank of Scotland Group Plc; US$42 million from Citigroup Inc. and US$30 million from Barclays Plc, court papers showed.

BNP Paribas SA, Morgan Stanley, Nomura Holdings Inc. and Wells Fargo & Co. have not settled, the papers showed.

The private litigation is among many lawsuits in the Manhattan court accusing banks of conspiring to rig rate benchmarks, securities prices or commodities prices.

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CG

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