It has been reported that JP Morgan and Goldman Sachs intimidated and threatened potential clients. They are amongst six of the largest banks which have been accused of conspiring to stifle competition.
Iowa Public Employees’ Retirement System, Orange Country Employees’ Retirement System and Sanoma County Employees’ Retirement System Association felt the market had been cornered on stock lending, and the banks had violated federal anti-trust law.
In the lawsuit, filed at Manhatten Federal Court, the Pension Funds reported that the banks forced them to pay high fees in stock lending. They additionally claimed that defendants conspired to take down upstart stock lending platforms AQS, in order for the lenders and borrowers to interact directly.
In 2012, Goldman Sachs threatened to stop doing business with Bank of New York Mellon if they continued to support AQS platform. Thus, BNY Mellon stopped using it.
It is interesting to see banks’ illegitimate dealings brought into the limelight and the law used successfully against them, especially on a global scale. Hopefully in the future, we will see more cases like this.
For more information, please see Independent’s article below: