Skip to main content

Newsroom

May 7, 2013

12 Banks Accused in Lawsuit of Restraining Swaps Market

“Goldman Sachs Group Inc. (GS), Citigroup Inc. (C) and 10 other banks have restrained market competition for credit default swaps in violation of U.S. antitrust law, a union pension plan claimed in a federal court complaint.

“’The CDS market has been starkly divided between those who control and distort the market and those who, in order to participate in the market, must abide their distortions,” according to the complaint filed May 3 by a suburban Cleveland union pension plan at the U.S. courthouse in Chicago. 

Sheet Metal Workers Local No. 33 Cleveland District Pension Plan, based in Parma, Ohio, seeks damages for what it says are “substantial injuries” it and people and entities on the “buy side” sustained in buying or selling CDS contracts to the “sell side” dealer-defendants between 2008 and 2011.

Credit-default swaps pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt. The contracts, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, decline as investor confidence improves and rise as it deteriorates.”

***

Read full Bloomberg article here

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today