Twenty-two financial companies that have served as primary dealers of U.S. Treasury securities were sued in federal court on Thursday, in what was described as the first nationwide class action alleging a conspiracy to manipulate Treasury auctions that harmed both investors and borrowers.

The State-Boston Retirement System, the pension fund for Boston public employees, accused Bank of America’s Merrill Lynch unit, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, UBS, and 14 other defendants of illegally trying to profit on the sale of Treasury bills, notes and bonds at investors’ expense.

According to the pension fund’s complaint, filed in U.S. District Court in New York, the banks used chat rooms, instant messages and other means to swap confidential customer information and coordinate trading strategies in the roughly $12.5 trillion Treasury market.

This enabled the banks to inflate prices on Treasurys they sold to investors in the pre-auction “when issued” market, and deflate prices when they bought Treasurys to cover their pre-auction sales, violating antitrust laws, according to the complaint.

Read more


NEWSLETTER SIGN UP

Get the latest breaking news & specials from Alex Jones and the Infowars Crew.

Related Articles


Comments