Banks agree to $86.4 million settlement over Mexican bond rigging

Mexican banking affiliates of Bank of America, Banco Santander, BBVA, Citigroup, Deutsche Bank, and HSBC have agreed to pay $86.4 million to settle an eight-year-old antitrust lawsuit. The settlement, filed in Manhattan federal court, aims to resolve claims that the banks rigged the market for Mexican government bonds.

Investors, including several pension funds, alleged that the banks conspired between 2006 and 2017 to fix prices and allocations of these bonds. Evidence cited in the case included chatroom transcripts suggesting banks suppressed purchase prices and increased selling prices. While the banks agreed to the settlement, they denied any wrongdoing.

The total payout, including previous settlements by Barclays and JPMorgan Chase in 2020, amounts to $107.1 million before legal fees. Lawyers for the investors may seek up to $28.8 million in fees.