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16 major banks sued in US over rigging currency market

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NEW YORK: A group of large institutional investors, including BlackRock and Allianz SE's Pacific Investment Management, has sued 16 banks, accusing them of rigging prices in the roughly US$5.1 trillion-a-day (S$7 trillion) foreign exchange market.

The lawsuit was filed on Wednesday in Manhattan by plaintiffs that decided to "opt out" of similar nationwide litigation that resulted in US$2.31 billion of settlements. Those followed worldwide probes that have led to more than US$10 billion of fines and the convictions of some traders.

The banks being sued are: Bank of America, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, Morgan Stanley, Japan's MUFG Bank, Royal Bank of Canada, Royal Bank of Scotland, Societe Generale, Standard Chartered Bank and UBS.

The plaintiffs accused the banks of conspiring from 2003 to 2013 to rig currency benchmarksby sharing confidential orders and trading positions.

"...Defendants restrained trade, decreased competition, and artificially increased prices, thereby injuring plaintiffs," the complaint said. - REUTERS

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