Philly sues banks over bond collusion

摘要

The City of Philadelphia has filed an antitrust lawsuit accusing seven major banks of conspiring to inflate interest rates for a type of bond used by cities, towns and other public entities, costing them potentially billions of dollars. In a complaint filed last week Philadelphia accused BANK OF AMERICA MERRILL LYNCH, BARCLAYS, CITIGROUP, GOLDMAN SACHS, JP MORGAN, ROYAL BANK OF CANADA and WELLS FARGO of secretly manipulating rates for tax-exempt bonds known as VRDOs, or variable-rate demand obligations.