| Title | Lawsuit Claims Banks Used Chat Rooms to Rig Auctions for Treasury Bonds | |
| Date | Monday November 27 2017, @11:57AM | |
| Author | Fnord666 | |
| Topic | ||
| from the playing-a-rigged-game dept. | ||
The New York Post reports:
Wall Street banks secretly shared client information in online chat rooms in order to rig auctions for the $14 trillion US Treasurys market, according to an explosive lawsuit filed in Manhattan federal court on [November 15].
The move wrongly fattened the banks' profits and picked profits from clients, the suit claims.
The new accusations, leveled by several pension funds and wealthy individual investors, are contained in an expanded class-action suit originally filed in July 2015 — and include an unusual twist: Some of the evidence came from confidential informants and one of the banks sued in the earlier action.
That bank is now cooperating with the plaintiffs in the massive civil action, and is providing an in-depth look into how Wall Street allegedly conspired to rig Treasury bond trades.
The revised lawsuit expands on details on how the banks conspired to set Treasury bond prices — like moves to manipulate the price of the bonds higher on days when there was a lot of demand, and vice versa, court papers claim.
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printed from SoylentNews, Lawsuit Claims Banks Used Chat Rooms to Rig Auctions for Treasury Bonds on 2023-07-17 21:02:48