Baltimore files major class-action antitrust lawsuit
Jenny Fulginiti
Lisa Robinson
I-Team Reporter
>> WE HAVE FOCUSED ON THOSE INSIDE THE CITY AND OUTSIDE THE CITY WHO POSE A RISK OF HARM, FINANCIAL HARM OR OTHER HARMS TO THE PEOPLE OF BALTIMORE. LISA: CITY SOLICITOR ANDRE DAVIS SAYS THE CITY HAS FILED A CLASS ACTION ANTI-TRUST SUIT SEEKING TO RECOVER DAMAGES FOR A PRICE FIXING CONSPIRACY IN THE SALE AND PURCHASE OF DEBT ISSUED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION OR FANNIE MAE AND FEDERAL HOME LOAN MORTGAGE CORPORATION, ALSO KNOWN AS FREDDIE MAC. THEY ARE REFERRED TO AS FFBS, SHORT FOR FANNIE AND FREDDIE BONDS. >> WE HAVE FILED A LAWSUIT AGAINST FANNIE MAE SPONSORED BANKS, INCLUDING CITIBANK, BANK OF AMERICA, AND A NUMBER OF OTHERS WHO WE BELIEVE WE HAVE FIRM EVIDENCE TO SHOW THAT THOSE BANKS HAVE CONSPIRED TO INCREASE THE COST OF THESE SO-CALLED FFB. THE U.S. DEPARTMENT OF JUSTICE HAS OPENED A CRIMINAL INVESTIGATION INTO PRICE MANIPULATION BY BANK TRADERS IN THE SECONDARY FFB MARKET. DAVIS SAYS THE CITY PURSUES RECOVERIES WHEN THEY LEARN THAT LARGE BANKS HAVE COLLUDED TO INCREASE PRICES ON COMPLEX FINANCIAL INSTRUMENTS, OVERCHARGING THE CITY BY MILLIONS OF DO
Baltimore City is going after some big financial institutions in a class action antitrust lawsuit.The lawsuit alleges price-fixing and conspiracy in the Fannie Mae/Freddie Mac bond market. City Solicitor Andre Davis said he's bringing the suit to protect city taxpayer interests."We have focused on those inside the city and outside the city who pose a risk of harm, financial harm or other harm, to the people of Baltimore," Davis said.Davis said the city has filed the class-action antitrust suit seeking to recover damages for a price-fixing conspiracy in the sale and purchase of debt issued by the Federal National Mortgage Association, or Fannie Mae, and the Federal Home Loan Mortgage Corp., also known as Freddie Mac. They are referred to as "FFBs," short for Fannie and Freddie bonds."We have filed a lawsuit against Fannie Mae-sponsored banks, including Citibank, Bank of America and a number of others who we have firm evidence to show these banks conspired to increase the cost of these FFBs," Davis said.Defendants include Bank of America, Barclays, Citi, Credit Suisse, Deutsche Bank, First Tennessee Bank, Goldman Sachs, Jefferies Group LLC, JP Morgan, Merrill Lynch, Pierce, Fenner & Smith Inc., UBS and other unnamed co-conspirators.Davis said in a statement that FFBs are favored by municipalities because they are generally considered safe investments that provide a high degree of liquidity.The U.S. Department of Justice has opened a criminal investigation into price manipulation by bank traders in the secondary FFB market. Davis said the city pursues recoveries when they learn that large banks have colluded to increase prices on complex financial instruments, overcharging the city by millions of dollars.Davis said pharmaceutical companies have encouraged doctors to push powerful drugs into the community. During the conspiracy period of 2009 though 2014, the city of Baltimore paid almost $1 billion for 108 FFBs, city officials said.Correction: An earlier version of this article reported about an opioid lawsuit. While the city solicitor spoke about the opioid lawsuit, the suit announced Thursday is for antitrust.​
Baltimore City is going after some big financial institutions in a class action antitrust lawsuit.
The lawsuit alleges price-fixing and conspiracy in the Fannie Mae/Freddie Mac bond market. City Solicitor Andre Davis said he's bringing the suit to protect city taxpayer interests.
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"We have focused on those inside the city and outside the city who pose a risk of harm, financial harm or other harm, to the people of Baltimore," Davis said.
Davis said the city has filed the class-action antitrust suit seeking to recover damages for a price-fixing conspiracy in the sale and purchase of debt issued by the Federal National Mortgage Association, or Fannie Mae, and the Federal Home Loan Mortgage Corp., also known as Freddie Mac. They are referred to as "FFBs," short for Fannie and Freddie bonds.
"We have filed a lawsuit against Fannie Mae-sponsored banks, including Citibank, Bank of America and a number of others who we have firm evidence to show these banks conspired to increase the cost of these FFBs," Davis said.
Defendants include Bank of America, Barclays, Citi, Credit Suisse, Deutsche Bank, First Tennessee Bank, Goldman Sachs, Jefferies Group LLC, JP Morgan, Merrill Lynch, Pierce, Fenner & Smith Inc., UBS and other unnamed co-conspirators.
Davis said in a statement that FFBs are favored by municipalities because they are generally considered safe investments that provide a high degree of liquidity.
The U.S. Department of Justice has opened a criminal investigation into price manipulation by bank traders in the secondary FFB market. Davis said the city pursues recoveries when they learn that large banks have colluded to increase prices on complex financial instruments, overcharging the city by millions of dollars.
Davis said pharmaceutical companies have encouraged doctors to push powerful drugs into the community. During the conspiracy period of 2009 though 2014, the city of Baltimore paid almost $1 billion for 108 FFBs, city officials said.
Correction: An earlier version of this article reported about an opioid lawsuit. While the city solicitor spoke about the opioid lawsuit, the suit announced Thursday is for antitrust.
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