Judge Dismisses Antitrust Case Against Major Banks

A federal judge has dismissed an antitrust case against big banks. Bank of America, a major banking group, has been organized around five areas of activity, including commercial banking, business and investment banking, wealth management, market banking, and other. The bank managed $1,965.5 billion in current deposits and $1,095.8 billion in current credits as of 2024.

A U.S. judge has dismissed an antitrust lawsuit accusing ten large banks, including Bank of America, of conspiring to rig corporate bond prices. The lawsuit alleged that the banks overcharged investors by billions of dollars since 2006 on "odd-lot" trades, which involve fewer than 1,000 bonds or are worth less than $1 million. Investors claimed the banks charged spreads 25% to 300% higher than on larger "round-lot" trades, inflating profits.

U.S. District Judge Valerie Caproni in Manhattan dismissed the case, stating that the investors failed to prove the banks conspired to operate the Bond Desk, Trading Edge, and Trade Web platforms as a "catch-and-kill" operation to thwart fair prices, while boycotting rival platforms that promoted fair prices. The judge also found no overt acts by the banks to advance the alleged conspiracy in the four years before the lawsuit was filed in April 2020, dooming the Sherman Act case [1].

The case was originally dismissed by U.S. District Judge Lewis Liman in October 2021. Four months later, Liman's clerk disclosed that the judge's wife owned Bank of America stock while the case was pending, but it didn’t affect the judge’s decision making. In July 2024, the federal appeals court in Manhattan revived the case, saying Liman’s conflict was "almost certainly" unknowing but could call his impartiality into question. Liman was not accused of wrongdoing [1].

Bank of America, a major banking group, has been organized around five areas of activity, including commercial banking, business and investment banking, wealth management, market banking, and other. The bank managed $1,965.5 billion in current deposits and $1,095.8 billion in current credits as of 2024 [2].

In other news, Bank of America announced a stock buyback program authorizing repurchases of up to $40 billion, reflecting management's belief that its stock is undervalued. Focus Partners Advisor Solutions LLC boosted its position in Bank of America Corporation (NYSE:BAC) by 12.0% during the first quarter, according to its most recent 13F filing with the SEC [2].

References:
[1] https://www.investing.com/news/stock-market-news/ten-big-banks-defeat-antitrust-lawsuit-in-us-over-bond-trades-4219940
[2] https://www.marketbeat.com/instant-alerts/filing-focus-partners-advisor-solutions-llc-raises-stake-in-bank-of-america-corporation-bac-2025-09-01/