JPMorgan, Morgan Stanley pay most in $1.9 billion swaps price-fixing settlement

Fri Oct 16, 2015 10:38pm EDT
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By Nate Raymond

(Reuters) - JPMorgan Chase & Co, Morgan Stanley and Barclays Plc will pay over half of a more than $1.86 billion settlement resolving investor claims they conspired to fix prices and limit competition in the market for credit default swaps, according to a court filing.

Details of the settlement's breakdown with those and nine other banks were disclosed in papers filed late on Friday, in federal court in Manhattan, a month after the proposed deal was first announced.

JPMorgan will pay $595 million, while Morgan Stanley and Barclays will pay $230 million and $178 million, respectively, according to the filings.

The defendants in the case include Bank of America Corp, BNP Paribas SA, Citigroup Inc, Credit 0Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc, HSBC Holdings Plc, Morgan Stanley, Royal Bank of Scotland Group Plc and UBS AG.

Goldman Sachs, Bank of America and Credit Suisse are set to pay about $164 million, $90 million and $159 million, while Deutsche, Citi and BNP Paribas will pay $120 million, $60 million and $89 million.

British banks HSBC and Royal Bank of Scotland will pay $25 million and $33 million.

The International Swaps and Derivatives Association (ISDA) will pay $750,000, while Markit Ltd, which provides credit derivative pricing services, will pay $45 million.

Credit default swaps are contracts that let investors buy protection to hedge against the risk that corporate or sovereign debt issuers will not meet their payment obligations.   Continued...

A view of the exterior of the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York City, May 20, 2015. REUTERS/Mike Segar