Five Top Financial Firms Must Face Bond Price-Fixing Claims (3)

Goldman Sachs & Co. and four other global financial firms must face claims they rigged the $550 billion market for bonds backed by Fannie Mae and Freddie Mac, a Southern District of New York judge ruled.

But a larger group of banks is off the hook for now, the judge said.

The proposed class action accuses the country’s top financial institutions of colluding to drive down the “ask” price at which they bought the unsecured bonds and pump up the “bid” price at which they sold them over the counter. The case is consolidated in the U.S. District Court for ...