Citi, Other Banks Must Face Fannie-Freddie Bond Price-Fix Suit

JP Morgan Chase & Co., Citigroup Inc., and eight other global banks must face claims they conspired to rig the $550 billion market for bonds backed by Fannie Mae and Freddie Mac, a Southern District of New York judge ruled Oct. 16.

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 the Southern District of New York.

Judge ...