Six Canada Banks Accused of Manipulating Derivatives Benchmark
- Colorado pension says Canada banks suppressed CDOR rates
- Fire & Police fund also names three global banks in suit
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A Colorado-based pension fund accused Canada’s six biggest banks and three foreign lenders of conspiring to manipulate a Canadian interest rate benchmark to boost “illegitimate profits" on derivatives trades for several years until 2014.
The Fire & Police Pension Association of Colorado alleged in a New York court filing that the banks sought to boost their earnings from derivatives trades by manipulating the Canadian Dealer Offered Rate, or CDOR, a benchmark lending rate. The alleged violations, including conspiracy under the U.S. Sherman Act and manipulation of the Commodity Exchange Act, took place for almost seven years, according to the filing.