Ten Major Banks Win Antitrust Lawsuit Over Bond Trades in the US

Ten major banks in the US have defeated an antitrust lawsuit over their bond trading practices. The lawsuit alleged that the banks conspired to rig bond prices, but a judge ruled in their favor. Bank of America, one of the defendants, is a banking group with five areas of activity and managed $1.9655 trillion in current deposits and $1.0958 trillion in current credits at the end of 2024.

A U.S. judge has dismissed an antitrust lawsuit accusing 10 major banks of conspiring to rig corporate bond prices at the expense of ordinary investors. The lawsuit, filed in April 2020, alleged that the banks, including Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, NatWest, and Wells Fargo, overcharged investors by billions of dollars on "odd-lot" trades. These trades involve fewer than 1,000 bonds or are worth less than $1 million, and comprise most corporate bond trades.

The lawsuit claimed that the banks charged spreads 25% to 300% higher than on larger "round-lot" trades, inflating profits. However, U.S. District Judge Valerie Caproni in Manhattan ruled in favor of the banks, 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. The judge also found no overt acts by the banks to advance the alleged conspiracy in the four years before the lawsuit was filed, which led to the dismissal of the Sherman Act case.

The case was originally dismissed by U.S. District Judge Lewis Liman in October 2021, but the federal appeals court in Manhattan revived the case in July 2024, stating that Liman's conflict of interest (his wife owned Bank of America stock) could call his impartiality into question. However, Liman was not accused of wrongdoing.

Bank of America, one of the defendants, is a banking group with five areas of activity and managed $1.9655 trillion in current deposits and $1.0958 trillion in current credits at the end of 2024.

The dismissal of the lawsuit is a significant victory for the banking industry, which has been facing increasing scrutiny over its market practices. However, the ruling also highlights the challenges faced by investors in proving antitrust violations in complex financial markets.

References:

[1] Reuters. (2025, August 29). DOJ antitrust head blasts Big Law for obstructive tactics. Retrieved from https://www.reuters.com/sustainability/boards-policy-regulation/doj-antitrust-head-blasts-big-law-obstructive-tactics-2025-08-29/

[2] TradingView. (2025). Reuters: 10 Big Banks Defeat Antitrust Lawsuit in U.S. Over Bond Trades. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3UP0PL:0-ten-big-banks-defeat-antitrust-lawsuit-in-us-over-bond-trades/