A $2 Billion lawsuit filed by investors against large banks is reportedly being settled. See Nathaniel Popper, "Banks to Settle With Investors in Suit Over Crisis" p. B1, col. 1 (New York Times Nat'l ed., "Business Day" Section, Saturday, September 12, 2015). The investors filed suit over the banks' use and alleged misuse of credit default swaps ("CDS"), a form of credit insurance unregulated by State Insurance Commissioners. The plaintiffs alleged that the banks conspired to close the CDS market to competitors, thereby driving up prices paid by the investors-plaintiffs.
One of the investors' attorneys claims that the banks are making changes which will make the CDS market more transparent as a part of the settlement. Id. However, the settlement terms are not reported.
The operational manual for settlements involving investment banks and the Great Recession calls for secret provisions and sealed side-agreements. It may be worth keeping a close eye on the Court File in this case.
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