Ten of Wall Street’s largest banks were accused of conniving to limit the competition in the $320 trillion market for interest rate swaps.
The class action lawsuit, filed by the Public School Teachers’ Pension and Retirement Fund of Chicago in US District Court in Manhattan, stipulates Bank of America Merrill Lynch, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase & Co., Royal Bank of Scotland, and UBS teamed up to halt the trading of interest rate swaps on electronic exchanges.
The case added the institutions have successfully prevented non-banks from dealing the world’s commonly traded investment instrument. Hence, the teachers’ pension and retirement fund overpaid for such swaps.
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