Bank of America (BoA) has revealed the size of its recent settlement in a US antitrust litigation case for allegedly manipulating the FX market to be $180 million.
Profit & Loss reported last month that BoA had become the third bank to agree a settlement in the case, in which 12 banks have been accused of conspiring to manipulate the WM/Reuters closing spot rates.
Now regulatory filings have revealed that the bank agreed to pay $180 million as part of this settlement deal.
“In the civil actions filed against the corporation and other FX market participants, plaintiff in the Foreign Action appealed the dismissal of the action, but voluntarily dismissed the appeal with prejudice on 24 April, 2015. In April 2015, the corporation and BANA agreed to settle the US Action for $180 million, which was fully accrued as of 31 March, 2015. The agreement is subject to execution of a final settlement agreement and court approval,” it says in the filing.
In Profit & Loss’ earlier report, a legal expert noted that the settlement deals also include a provision for cooperation with the plaintiffs in their prosecution of the other defendants, but that this cooperation will become less valuable for any future deals with each bank that settles.
It’s possible that this prediction is being evidenced in the increasing sizes of the settlements being agreed.
JP Morgan – the first bank to settle in this lawsuit – agreed a $99.5 million settlement deal in February, UBS then agreed to pay $135 million to settle in March and now BoA has had to agree an even larger settlement of $185 million.
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