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US: Revival suit against Goldman Sachs, Citigroup fails

By  |  March 5, 2013
US: Revival suit against Goldman Sachs, Citigroup fails

A ruling that dismissed complaints brought against Goldman Sachs Group Inc. and Citigroup Inc., accusing the banks of violating antitrust laws after they left the market for auction-rate securities, has been upheld by as US Court of Appeals in New York on Tuesday. Issuers of the securities and investors had attempted to revive the suit arguing the banks colluded to exit the market simultaneously and that they bid at auctions to boost the market; auction-rate securities have their interest rates reset periodically at auctions, according to reports. But the appeals court noted that the banks’ decision to leave the market “made perfect business sense.”

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    Full Content: Bloomberg

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