Twelve major banks have tentatively agreed to pay $1.87 billion to settle allegations that they colluded to fix prices and lock out competitors in the market for insurance-like products widely traded before the financial crisis, according to a lawyer for investors.
Daniel Brockett, a lawyer representing a Los Angeles pension fund among other plaintiffs, says the deal would be one of the largest U.S. anti-trust settlements, says . He said the final terms need to be hammered out.
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Bank of America, JPMorgan Chase, Citigroup and other banks met secretly to kill proposals that would put the trading of credit default swaps onto an exchange that would make prices more transparent, according to a complaint filed in U.S District Court in New York.
The banks have denied allegations of wrongdoing. They do not face criminal charges.