JP Morgan settles foreign exchange market antitrust case

Posted on: February 4th, 2015 by Steve Larson
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chaseJP Morgan Chase has settled the claims against it in a U.S. antitrust lawsuit for about $100 million.  In the lawsuit, the investors allege that JP Morgan and 11 other major banks rigged prices in the $5 trillion-a-day foreign exchange market.

The settlement must be approved by the court.    

The lawsuit is separate from government criminal and civil probes worldwide into whether banks rigged currency rates to boost profit at the expense of customers and investors.  JPMorgan agreed in November to pay roughly $1.01 billion to resolve such probes by U.S. and European regulators. Five other banks settled for an additional $3.3 billion.

Other defendants include Bank of America Corp., Barclays Plc, BNP Paribas SA, Citigroup Inc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc, HSBC Holdings Plc, Morgan Stanley, Royal Bank of Scotland Group Plc, and UBS AG.

According to the lawsuit, the 12 banks held an 84 percent global market share in currency trading, and were counterparties in 98 percent of U.S. spot volume.

The case is In re: Foreign Exchange Benchmark Rates Antitrust Litigation, U.S. District Court, Southern District of New York, No. 13-07789.