Big banks face CDS lawsuit

It’s about time….

Investors may pursue a lawsuit accusing 12 major banks of violating antitrust law by fixing prices and restraining competition in the roughly $21 trillion market for credit default, an article in Reuters said.

While dismissing part of the case, U.S. District Judge Denise Cote said investors may press claims that the defendants’ Sherman Act violations caused them to pay unfair prices on CDS trades from the autumn of 2008 through the end of 2013, even as improved liquidity should have driven costs down.

“The complaint provides a chronology of behavior that would probably not result from chance, coincidence, independent responses to common stimuli, or mere interdependence,” Cote said.

According to the article, the defendants include Bank of America (BAC), Barclays, BNP Paribas, Citigroup (C),Credit Suisse Group (CS), Deutsche Bank (DB) , GoldmanSachs (GS), HSBC Holdings (HSB), JPMorgan Chase(JPM), Morgan Stanley (MS), Royal Bank of Scotland Group (RBS) and UBS AG (UBS).

Source: Reuters

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