A federal judge on Tuesday dismissed an antitrust lawsuit accusing 10 large banks of conspiring to rig corporate bond prices at the expense of ordinary investors, after the original judge recused himself because his wife owned stock in one of the banks.
Investors accused Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, NatWest, and Wells Fargo of overcharging them by billions of dollars since 2006 on “odd-lot” trades.
Such trades involve fewer than 1,000 bonds or are worth less than $1 million, and comprise most corporate bond trades. Investors said the banks illegally charged spreads 25% to 300% higher than on larger “round-lot” trades, inflating profits.
US District…
