Big Banks’ $500 Million Settlement Puts Wall Street on Notice

A nearly $500 million settlement agreement by four investment banks over control of the stock-loan market is prompting changes to bank practices and warning the industry to take antitrust violations more seriously, analysts said.

Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., and UBS Group AG last week said they agreed to settle claims in a case brought by pension funds led by the Iowa Public Employees’ Retirement System. The funds in 2017 filed suit, accusing the Wall Street giants of conspiring to thwart all-electronic trading systems that match stock lenders and borrowers in an ...