4 giants in the banking sector intend to recompense nearly 500M dollars for the settlement of a class action case. As per the respective lawsuit, they supposedly attempted to hinder competition within the market of stock lending. Morgan Stanley, UBS, Goldman Sachs, and JPMorgan have agreed to the payment of up to $499M for the lawsuit’s settlement.
Prominent 4 Banking Institutions to Recompense for the Settlement of a Class Action Case
The US pension funds filed the respective lawsuit back in the year 2017. It was submitted under the lead of the Retirement System of the Iowa Public Employees. The pension funds asserted that the targeted banking platforms attempted to become prominent in the market. In this respect, they did so with their system named EquiLend.
The pension funds added that the banks hindered the development of the exclusive companies. The respective firms would perform the electronic assets’ lending and borrowing. In the year 2001, EquiLend’s establishment took place. The entities credited for this included Barclays Global Investors, UBS Warburg, State Street, and Northern Trust.
The other such firms took into account, Morgan Stanley, Merrill Lynch, Lehman Brothers, JPMorgan Chase, Goldman Sachs, and Bear Stearns. At present, Bank of America is responsible for possessing EquiLend. Credit Suisse already recompensed a fine of up to $81M for the settlement of the platform’s lawsuit’s end. At the moment, Bank of America plays the role of the last defendant without any settlement.
Petitioners Believe the Settlement Should Minimize the Stock Lending Industry’s Likely Collusion in the Future
None of the respective banking companies released any statement regarding this matter. As per the court documents, the plaintiffs expect the settlement to prevent analogous anti-competitive operations in the future. Plaintiffs are of the view that the reforms should materially minimize the potentiality of such collusion in the market of stock lending.
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