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Six Banks' Mexican Units Offer $86.4 Million to Settle Bond‑Rigging Suit

Court approval would close the remaining claims and increase total recoveries to $107.1 million before fees.

Overview

  • Mexican affiliates of Bank of America, Banco Santander, BBVA, Citigroup, Deutsche Bank and HSBC filed a preliminary settlement in Manhattan federal court agreeing to pay $86.4 million to resolve investor claims over Mexican government bonds.
  • The payout, combined with earlier 2020 settlements by JPMorgan Chase and Barclays, brings gross recoveries in the litigation to $107.1 million before legal fees and administrative costs.
  • Plaintiffs, led by U.S. pension funds, relied on internal records including trader chatroom transcripts to allege coordinated price and allocation manipulation from 2006 to 2017.
  • The banks denied wrongdoing as part of the settlement and final resolution now depends on a judge’s review of the deal, any objections, and lawyers’ fee requests.
  • If approved, the case would join a string of Manhattan antitrust suits that used internal communications to win settlements in alleged market‑collusion cases and could affect how banks manage trader oversight and internal messaging going forward.