JPMorgan, Barclays settle Mexican bond rigging litigation

JPMorgan, Barclays settle Mexican bond rigging litigation

A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York
FILE PHOTO: A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in Manhattan, New York, U.S., November 13, 2017. REUTERS/Amr Alfiky

NEW YORK: JPMorgan Chase & Co and Barclays will pay US$20.7 million to resolve investors' claims they conspired to rig the Mexican government bond market, the first of nine banks in the proposed class-action litigation to settle.

In a Monday night filing with the US District Court in Manhattan, lawyers for the investors said the "ice breaker" settlements could be a catalyst for settlements with the other bank defendants.

These defendants include affiliates of Banco Santander, Bank of America, BBVA, Citigroup, Deutsche Bank, HSBC and UBS.

JPMorgan is paying US$15 million, and Barclays is paying US$5.7 million. Both denied wrongdoing in agreeing to settle. Neither bank immediately responded on Tuesday to request for comment.

Investors led by several pension funds accused the defendant banks of operating as a "cartel" from January 2006 to April 2017 by sharing pricing and other transaction data, including through chatrooms, to maximize their profits at investors' expense.

The private litigation began after Mexico's antitrust watchdog, the Federal Economic Competition Commission (COFECE), began a probe into possible collusion.

That culminated last October in accusations against seven of the banks.

Monday's settlements require approval by US District Judge Paul Oetken. He had dismissed the lawsuit last September, but let the investors amend their complaint.

The case is In re Mexican Government Bonds Antitrust Litigation, US District Court, Southern District of New York, No 18-02830.

Source: Reuters/jt

Bookmark