Some of Wall Street’s biggest financial institutions - including Goldman Sachs, JPMorgan, Citigroup and HSBC - have agreed to a $1.87bn settlement to resolve allegations they conspired to limit competition in the lucrative credit-default swaps market.
Bloomberg News reports that the banks reached an agreement in principle with a group of investors that includes the Los Angeles County Employees Retirement Association, Daniel Brockett, a lawyer for the group, told a judge in Manhattan federal court on Friday. The sides need seven to 10 more days to iron out some details, Brockett said.
A settlement would avert 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 a dozen global banks - along with Markit Group, 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 U.S. antitrust laws.
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