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You Didn't Lose All That Money On Swaps Because You Are Bad At Investing And Risk-Management

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You lost it because banks are monopolistic monsters. Just ask an affiliate of a corpse and a German state bank.

Two financial institutions filed lawsuits alleging large banks have had an unfair stranglehold on the $25 trillion credit-default-swaps market, adding to a pile of complaints about antitrust violations in derivatives….

MF Global Capital LLC, an arm of the collapsed broker managed by a board liquidating the company, alleged the banks "restrained competition" in the market. The asset-management arm of Landesbank Baden-Wurttemberg accused the banks in its lawsuit of unfairly dominating the credit-default-swaps market and overcharging customers since at least 2006.

The banks named in the MF Global suit are: Bank of America Corp., Barclays PLC, BNP Paribas SA, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., HSBC Holdings PLC, Morgan Stanley, Royal Bank of Scotland Group PLC and UBS AG.

Markit Group Ltd., a financial-data provider that is co-owned by several banks, and the International Swaps and Derivatives Association, a trade group for swaps, also are named as defendants. J.P. Morgan Chase & Co. was named as a "co-conspirator."

The German lender's lawsuit names as defendants the same banks as MF Global's suit, Markit and ISDA. It includes J.P. Morgan as a defendant, and adds Wells Fargo & Co.

Banks Face More Suits Over Swaps [WSJ]