Goldman, JPMorgan, Morgan Stanley, UBS Settle Stock-Lending Suit
- Morgan Stanley and UBS also part of class-action settlement
- Suit targets banks’ control of loans used in short selling
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Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co. and UBS AG agreed to pay nearly $500 million to settle an antitrust class action by US pension funds over the banks’ control of the market for stock loans used for hedging and short selling.
According to a Wednesday court filing by the pension funds in Manhattan federal court, the four banks agreed to pay $499 million and also cooperate in the litigation against Bank of America Corp., the sole remaining defendant. Credit Suisse AG last year agreed to pay $81 million to settle the claims against it.