UPDATE 1-UBS, others reach $103 million muni bond rigging settlements

Wed Feb 24, 2016 12:08pm EST
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* Banks accused of rigging municipal derivatives prices

* More than $226 million settlements reached overall

* Natixis, Societe Generale settle with U.S. states (Adds Natixis, Societe Generale settlements with U.S. states; adds second byline)

By Jonathan Stempel and Sarah N. Lynch

NEW YORK, Feb 24 (Reuters) - UBS AG and five other banks and brokerages agreed to pay roughly $103 million to settle claims that they conspired to rig prices for U.S. municipal securities.

Wednesday's accords include payments of $100.5 million to investors. Two of the defendants, France's Natixis SA and Societe Generale, also agreed to pay $2.8 million to resolve related claims by 21 U.S. states and Washington, D.C.

If approved by a federal judge, the private settlements would end nearly eight years of class action litigation, and result in more than $226 million of payouts from 11 defendants, led by $44.6 million from JPMorgan Chase & Co.

Several banks have during that time also agreed to pay more than $740 million, led by JPMorgan's $228 million, to resolve related probes by the U.S. Department of Justice and state regulators. At least 17 people were convicted or pleaded guilty, the Justice Department has said.

The investor plaintiffs, including the City of Baltimore and the Central Bucks School District in Pennsylvania, accused banks of conspiring to fix prices for municipal derivatives, causing them to receive lower interest rates than they would have gotten in a competitive marketplace.   Continued...