JP Morgan & Citigroup to Pay $182.5 Million Settlement Fee

Citigroup and JP Morgan look set to pay a combined total of $182.5 million to settle a case brought against them, as well as a number of other banks, by a group of investment companies. The two banking giants are accused of having violated antitrust laws.

Along with a handful of other banks, Citigroup and JP Morgan allegedly manipulated the European Interbank Offered Rate (Euribor) - an interest rate benchmark used by firms as a reference point for euro-denominated financial instruments.

A number of Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term firms, including pension fund the California State Teachers’ Retirement System, brought litigation against the banks involved, saying they rigged the Euribor rate and fixed the prices of Euribor-based derivatives from June 2005 until March of 2011.

Third Fine in a Year for JP Morgan

Reuters reported on Friday that JP Morgan and Citigroup deny any wrongdoing in the settlement. Instead, they will pay the settlement fees to avoid a lengthy legal process and expensive litigation - and public relations - costs.

This is the second fine that JP Morgan has paid in under a week. The American investment bank was fined $7 million by authorities earlier this week for working with rival banks to rig the Australian Bank Bill Swap Reference Rate.

In June of this year, the firm was also fined $65 million for manipulating the US Dollar International Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term and Derivatives Association Fix.

Thus far, US courts have managed to squeeze close to half a billion dollars out of banks involved in the Euribor manipulation scandal. Deutsche Bank paid $170 million in June of last year, and Barclays coughed up $94 million in late 2015.