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The Next Stab At Proving That Banks Are Bad

After being the dominant provider of index and single name CDS data for years, the credit derivatives vilification campaign has emboldened the Justice Department enough to go after Markit for anticompetitive practices. Figuring that a company owned by some of the most hated firms on the planet which offers pricing information for the primary scapegoat of the financial crisis might give into temptation and impose its status on the market, the Justice Department has likely already declared political victory merely by announcing its investigation. Among the alleged sins are taking a page out of the cable TV playbook and requiring customers to buy bundled services to access the good stuff as well as playing gatekeeper for which CDS trades can be cleared. Evidently the DC braintrust figures if you throw enough conspiracy theories and lawsuits at GS, JPM et al, one of them has to stick eventually.