US: Pension funds sue 6 banks over market collusion

Three public pension funds claim in a federal class-action lawsuit filed Thursday, August 17, that six major investment banks colluded to overcharge investors and maintain control of the US$1.72 trillion stock loan market, according to a court document.

The suit was filed in US District Court in New York by the US$28.5 billion Iowa Public Employees’ Retirement System, Des Moines; US$14.2 billion Orange County Employees Retirement System, Santa Ana; and US$2.5 billion Sonoma County Employees’ Retirement Association, Santa Rosa, Calif.

“Major investment banks are conspiring to preserve their profits at the expense of everyday investors,” plaintiffs’ attorney Michael Eisenkraft of Washington-based Cohen Milstein Sellers & Toll said in a statement Thursday. The investors are seeking unspecified damages in the class-action antitrust case, which could be tripled under federal law.

The suit accuses Bank of America, Credit Suisse, Goldman Sachs, JP Morgan Chase, Morgan Stanley and UBS of violating antitrust law by conspiring to overcharge investors and obstructing efforts to create competitive electronic exchanges, according to Bloomberg.

Full Content: Bloomberg

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