Bank said to be informing against co-conspirators in Treasury bond rigging

Wall St. Traders Secretly Used Chat Rooms to Rig Treasury Bond Prices, Lawsuit Says

By Kevin Dugan
New York Post
Thursday, November 16, 2017

Wall Street banks secretly shared client information in online chat rooms to rig auctions for the $14 trillion US Treasuries market, according to an explosive lawsuit filed in Manhattan federal court on Wednesday.

The move wrongly fattened the banks' profits and picked profits from clients, the suit claims.

The new accusations, leveled by several pension funds and wealthy individual investors, are contained in an expanded class-action suit originally filed in July 2015 -- and include an unusual twist: Some of the evidence came from confidential informants and one of the banks sued in the earlier action.

That bank is now cooperating with the plaintiffs in the massive civil action and is providing an in-depth look into how Wall Street allegedly conspired to rig Treasury bond trades.

The revised lawsuit expands on details on how the banks conspired to set Treasury bond prices -- like moves to manipulate the price of the bonds higher on days when there was a lot of demand, and vice versa, court papers claim.

The banks worked their scam for years until the Post first reported in June 2015 the existence of a government investigation into the alleged actions, the updated lawsuit claims. ...

... For the remainder of the report:

https://nypost.com/2017/11/16/wall-st-bankers-secretly-used-chat-rooms-t...