Sacramento Jumps Into Muni Derivatives Antitrust Fray

Law360, New York (November 13, 2009, 3:05 PM EST) -- The Sacramento Municipal Utility District has joined thousands of municipalities across the country in accusing financial giants Bank of America NA, UBS AG and JPMorgan Chase & Co., among many others, of rigging the bids offered in municipal derivatives auctions.

In a lawsuit filed Thursday in the U.S. District Court for the Eastern District of California, SMUD accused the investment banks of colluding to divvy up the market for municipal derivative instruments and forcing the municipality to earn a lower return on its investments.

The case...
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