JPMorgan, Barclays settle Mexican bond rigging litigation

By Jonathan Stempel

NEW YORK, June 2 (Reuters) - JPMorgan Chase & Co and
Barclays Plc will pay $20.7 million to resolve
investors' claims they conspired to rig the Mexican government
bond market, the first of nine banks in the proposed
class-action litigation to settle.

In a Monday night filing with the U.S. District Court in
Manhattan, lawyers for the investors said the "ice breaker"
settlements could be a catalyst for settlements with the other
bank defendants.

These defendants include affiliates of Banco Santander, Bank
of America, BBVA, Citigroup, Deutsche Bank, HSBC and UBS.

JPMorgan is paying $15 million, and Barclays is paying $5.7
million. Both denied wrongdoing in agreeing to settle. Neither
bank immediately responded on Tuesday to request for comment.

Investors led by several pension funds accused the defendant
banks of operating as a "cartel" from January 2006 to April 2017
by sharing pricing and other transaction data, including through
chatrooms, to maximize their profits at investors' expense.

The private litigation began after Mexico's antitrust
watchdog, the Federal Economic Competition Commission (COFECE),
began a probe into possible collusion.

That culminated last October in accusations against seven of
the banks.

Monday's settlements require approval by U.S. District Judge
Paul Oetken. He had dismissed the lawsuit last September, but
let the investors amend their complaint.

The case is In re Mexican Government Bonds Antitrust
Litigation, U.S. District Court, Southern District of New York,
No. 18-02830.
(Reporting by Jonathan Stempel in New York; Editing by David
Gregorio)