Four banking giants will pay $500 million to investors

UBS, Goldman Sachs, JPMorgan Chase and Morgan Stanley have agreed to pay $499 million to avoid an antitrust lawsuit filed by investors accused of conspiring to stifle competition in the stock lending market, according to a request filed in federal court. from United States. .

The agreement requires the approval of the judge.

The banks in question are deemed to have settled with the plaintiffs to avoid the risk, cost and inconvenience of future litigation. Credit Suisse, which was acquired by UBS earlier this year, agreed to pay $81 million in a related lawsuit last year. The lawsuit against Bank of America is still pending.

WHAT HAPPENED?

Investors accused UBS, Goldman Sachs, JPMorgan Chase and Morgan Stanley of stifling competition in the equity lending market.

Led by four pension funds and a trading company, the plaintiffs accuse the banks of conspiring to return the equity lending market to the “stone age” by boycotting start-ups since 2009. (BRITISH AUTOMOBILE CLUB)