Pension funds sue banks.
Global Banking News-August 18, 2017--Pension funds sue banks
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Global Banking News - 18 August 2017
Three major pension funds in Orange County have sued large financial institutions for alleged collusion.
The pension funds, including the Orange County Employees Retirement System, have alleged that banks had colluded to control a part of the stock market for their own gains.
Half a dozen Wall Street banks have been named in the suit, which alleged that the banks conspired to influence the stock markets, thereby increasing charges for the funds and losses for retirees.
The funds allege Bank of America (NYSE: BAC), Goldman Sachs (NYSE: GS), Credit Suisse (NYSE: CS), JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE: MS) and UBS AG (NYSE: UBS) had worked together since at least 2009 to 'boycott, attack and acquire multiple entities' that tried to lower costs in the stock loan market, which is employed regularly by pension funds.
Banks are alleged to have used EquiLend, a stock lending platform they own, to 'prevent participants from accessing marketplaces where they could benefit from direct, all-to-all trading and thereby secure themselves the best prices.'
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