Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Bank of America    BAC

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

U.S. pension funds sue Goldman, JPMorgan, others over stock lending market

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/17/2017 | 10:45pm CEST
FILE PHOTO: A man walks into the JP Morgan headquarters at Canary Wharf in London

Three U.S. pension funds sued six of the world's largest banks on Thursday, including Goldman Sachs Group Inc (>> Goldman Sachs Group) and JP Morgan Chase & Co (>> JPMorgan Chase), accusing them of conspiring to stifle competition in the more than $1 trillion stock lending market.

Three U.S. pension funds sued six of the world's largest banks on Thursday, including Goldman Sachs Group Inc (>> Goldman Sachs Group) and JP Morgan Chase & Co (>> JPMorgan Chase), accusing them of conspiring to stifle competition in the more than $1 trillion stock lending market.

In the lawsuit filed in a Manhattan federal court, the funds accused the banks of boycotting start-up lending platforms by threatening and intimidating their potential clients. The defendants include Bank of America Corp (>> Bank of America), Credit Suisse AG <CSAG.UL>, Morgan Stanley (>> Morgan Stanley), UBS AG (>> UBS Group), Goldman and JP Morgan.

The Iowa Public Employees' Retirement System, Orange County Employees' Retirement System and Sonoma County Employees' Retirement Association said in the lawsuit that the banks have cornered the market on stock lending in violation of federal antitrust law.

“Through various improper means, the likes of Goldman Sachs and Morgan Stanley have for years colluded to maintain their power over this little-known-but-lucrative corner of Wall Street," said Michael Eisenkraft, a lawyer for the funds and partner with Cohen Milstein.

Representatives of Bank of America, Goldman Sachs and JPMorgan declined to comment. The other banks did not immediately respond to requests for comment.

The pension funds said collusion by the banks harms investors and retirees by forcing them to pay high fees to engage in stock lending.

Stock lending is related to short selling and involves lending a stock to an investor or firm through a broker or dealer. Pension funds and other institutional investors frequently lend stock to hedge funds.

In short selling, a security that is not owned or has been borrowed is sold with the idea that it can be bought at a future date at a lower price.

The funds claimed in the lawsuit that the defendants conspired to take down upstart stock lending platforms AQS, which was developed by Quadriserv Inc, and SL-x, which would have allowed lenders and borrowers to interact directly.

The lawsuit claimed that in 2012 Goldman Sachs threatened to stop doing business with Bank of New York (BNY) Mellon if it continued to support the AQS platform and that the bank agreed to stop using it. BNY Mellon declined to comment.

The lawsuit said that through a joint project called EquiLend LLC, the banks purchased SL-x's intellectual property and shelved it, according to the lawsuit. The funds accused the banks of establishing EquiLend in 2001 to safeguard their interests in the stock lending market.

A spokesman for EquiLend, which is also named as a defendant in the lawsuit, declined to comment.

(Reporting by Daniel Wiessner in Albany, New York; Editing by Marcy Nicholson)

By Daniel Wiessner

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BANK OF AMERICA
02:18p BANK OF AMERICA : Today's Research Reports on Stocks to Watch: Bank of America a..
01:52p BANK OF AMERICA : Donation Supports UA Little Rock Summer Bridge Academy
12:28p BANK OF AMERICA : Prevent Data Decay From Ruining Your CRM System
02:14a BANK OF MARIN BANCORP (NASDAQ : BMRC) Files An 8-K Departure of Directors or Cer..
09/20 BANK OF AMERICA : Day of Caring helps SouthCoast nonprofits
09/20 PROCTER & GAMBLE : U.S. Patents Awarded to Inventors in Kentucky (Sept. 20)
09/20 BANK OF AMERICA : U.S. Patents Awarded to Inventors in Missouri (Sept. 20)
09/20 BANK OF AMERICA : Voting milestone to be celebrated
09/20 JP MORGAN CHASE MPANY : DBS appoints Mark Troutman as new head of sales for glob..
09/20 BANK OF AMERICA : Olympians, NYC Champions Among Added Athletes to 2017 Bank of ..
More news
News from SeekingAlpha
09/19 The Fed To Drive Bank Of America, Citigroup, JPMorgan And Financials Higher
09/19 My Valuation Of Berkshire Hathaway
09/18 RETIREMENT STRATEGY : Team Alpha Retirement Portfolio II, For The Younger Invest..
09/18 Bank Of America - When Traders Go OOPS
09/18 MY PORTFOLIO : Beating The Index Without Tech
Financials ($)
Sales 2017 89 489 M
EBIT 2017 33 570 M
Net income 2017 19 501 M
Debt 2017 -
Yield 2017 1,56%
P/E ratio 2017 13,81
P/E ratio 2018 11,57
Capi. / Sales 2017 2,95x
Capi. / Sales 2018 2,85x
Capitalization 264 B
Chart BANK OF AMERICA
Duration : Period :
Bank of America Technical Analysis Chart | BAC | US0605051046 | 4-Traders
Technical analysis trends BANK OF AMERICA
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 31
Average target price 26,7 $
Spread / Average Target 6,5%
EPS Revisions
Managers
NameTitle
Brian T. Moynihan Chairman, President & Chief Executive Officer
Catherine P. Bessant Co-COO & Chief Technology Officer
Thomas Kell Montag Co-Chief Operating Officer
Paul M. Donofrio Chief Financial Officer
Thomas J. May Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
BANK OF AMERICA10.32%264 398
JP MORGAN CHASE & COMPANY6.18%332 894
INDUSTRIAL AND COMMRCL BANK OF CHINA LTD30.84%301 937
WELLS FARGO-3.18%266 812
CHINA CONSTRUCTION BANK CORPORATION25.37%230 863
BANK OF CHINA LTD18.02%216 932