UBS among firms reaching bond rigging settlement

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UBS, Natixis and four other banks and brokerages agreed to pay just over $100m to settle investor claims that they conspired to rig prices for municipal securities.

Reuters reports that if approved by a federal judge, the settlements disclosed on Wednesday would end seven years of private class action litigation, and result in more than $226m of payouts from 11 defendants.

The plaintiffs, including the City of Baltimore and the Central Bucks School District in Pennsylvania, accused the defendants of conspiring to fix prices for municipal derivatives, causing them to receive lower interest rates than they would have gotten in a competitive marketplace.

Municipalities that sell bonds typically invest proceeds they do not need to spend immediately elsewhere, and hire banks and brokers to seek out competitive bids.

To access the complete Reuters article hit the link below:

UBS, others reach $100 million muni bond rigging settlements

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