A private lawsuit was filed in a Manhattan court accusing five major banks and four traders of conspiring to rig prices worldwide in a more than $9tn market for bonds issued by government-linked organizations and agencies.
The accused banks comprise of Bank of America Corp, Credit Agricole SA, Credit Suisse Group AG, Deutsche Bank AG and Nomura Holdings Inc.
It was claimed that were accused of secretly agreeing to widen the “bid-ask” spreads they quoted customers of supranational, sub-sovereign and agency (SSA) bonds.
The lawsuit was filed by the Boston Retirement System, which said the collusion dates back to 2005, and caused investors to overpay for bonds they bought or accept low prices for bonds they sold.
The proposed class-action lawsuit seeks triple damages, and follows probes by U.S. and European Union antitrust regulators into possible SSA bond price rigging.
Those probes are also examining the London-based defendant traders Hiren Gudka of Bank of America, Bhardeep Singh Heer of Nomura, Amandeep Singh Manku of Credit Agricole and Shailen Pau of Credit Suisse.