Citigroup, JPMorgan to resolve rate-rigging suit for $182.5m

Citigroup and JPMorgan Chase have agreed to pay $182.5 million to resolve an antitrust lawsuit alleging the companies conspired with other banks to manipulate a European interest rate benchmark, according to a report by Reuters.

The European Interbank Offered Rate, or Euribor, is the euro-denominated counterpart of Libor, which is used to set rates on credit card, student loan, mortgage, and other debt worth hundreds of trillions of dollars.

A preliminary settlement has been filed with the US District Court in Manhattan and must be approved by the judge.

In addition to settlements by three other banks in the case, the agreements by Citigroup and JPMorgan resulted in total settlements of $491.5 million. Deutsche Bank had earlier settled for $170 million, Barclays for $94 million, and HSBC Holdings for $45 million, according to the report.

The agreement stems from a lawsuit filed by investors including the California State Teachers’ Retirement System pension fund claiming banks profited at the investors’ expense by manipulating the Euribor and fixed derivatives prices from June 2005 to March 2011.

Citigroup and JPMorgan denied any wrongdoing, saying that they entered the settlements to avoid the cost and distraction of litigation. Spokespersons for the two banks as well as the lawyer for the plaintiffs declined to comment, Reuters reported.

The lawsuit continues against several banks as defendants.

In a separate settlement, JPMorgan agreed to pay $7 million to resolve investor allegations that it conspired to manipulate the Australian Bank Bill Swap Reference Rate, the first defendant to do so.