Financial institutions JPMorgan, BofA, along with others, are considering a potential $46 million settlement for interest rate swap agreements.
In a significant development, ten major banks, including JPMorgan Chase, Goldman Sachs, Citi, BNP Paribas, Bank of America, Morgan Stanley, UBS, Barclays, Deutsche Bank, and NatWest, have agreed to pay a combined sum of $71 million to settle an antitrust lawsuit [1]. The settlement was granted final approval by the court in mid-2025.
The lawsuit, initially filed in 2016, accused the banks of colluding to maintain inflated bid/ask spreads and prevent trading on modern electronic platforms in the interest rate swaps (IRS) market [1]. The banks were alleged to have boycotted emerging platforms that offered more competitive prices and facilitated direct trades between buy-side investors.
The settlement resolves claims that these banks conspired to restrict buy-side investors, such as public pension funds, from trading with each other and using electronic platforms [1]. However, it's important to note that there is no specific mention of Goldman Sachs in the July 2025 settlement approval, but the bank is named in the broader litigation context against banks in the IRS market.
Despite the denial of any wrongdoing by the banks, the case has been a contentious issue. The judge in December 2022 denied the plaintiffs' motion for class certification in the interest rate swaps case. If the case had proceeded, it could have potentially required the banks to pay a significant amount, as predicted by Bloomberg Intelligence analysts, who previously estimated that the banks might have to pay between $170 million and $850 million [1].
This antitrust lawsuit is part of a broader litigation that has lasted over a decade, alleging big banks have manipulated various markets, including credit-default swaps, U.S. Treasuries, currencies, and commodities [1]. The case follows another case filed a year after JPMorgan agreed to pay part of a $1.86 billion settlement to resolve claims of limiting competition in the credit-default swaps market [1].
If approved, the settlement will deliver substantial cash relief to the proposed Settlement Class and bring to a close more than eight years of protracted litigation [1]. The case may have implications for other similar cases, as it involves allegations of manipulation in various financial markets.
As of 2025, no more recent developments or trial outcomes beyond this settlement approval have been identified, indicating the case has largely moved toward resolution via settlement rather than ongoing litigation.
[1] Source: Court documents and news reports from 2022 and 2025.
The banks, such as JPMorgan Chase, Goldman Sachs, Citi, BNP Paribas, Bank of America, Morgan Stanley, UBS, Barclays, Deutsche Bank, and NatWest, were involved in a business dispute regarding Colluding to maintain inflated bid/ask spreads and preventing trading on modern electronic platforms in the interest rate swaps (IRS) market. The settlement resolves claims that these banks conspired to restrict buy-side investors, like public pension funds, from trading with each other and using electronic platforms, potentially impacting the finance industry's future competitive landscape.