11 Banks Sued By MF Global for Restrained Competition by Inappropriately Controlling the Swaps Mrkt.
"11 Banks Sued By MF Global for Restrained Competition by Inappropriately Controlling the Swaps Market
Lenders Accused of Anticompetitive Practices
An affiliate of MF Global Holdings Ltd. filed a lawsuit alleging 11 banks engaged in anticompetitive practices in the $25 trillion credit-default-swaps market, including blocking the company from becoming a clearing broker for swaps.
MF Global Capital LLC, an arm of the collapsed broker managed by a board liquidating the company, filed a lawsuit Monday in the U.S. District Court for the Northern District of Illinois, alleging the banks "restrained competition" in the market. Credit default swaps are insurance-like contracts that pay out when a country or a company defaults on its debts..."