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Suit Cites E-mail as Proof of Huge Conspiracy to Rig Municipal Bond Rates

Posted 10 hours, 32 minutes ago
By Debra Cassens Weiss

Bank of America e-mails are being cited as proof in a lawsuit by Los Angeles that claims the city's brokers took kickbacks in a massive scheme to rig the bidding for municipal bonds.

The suit filed in Los Angeles superior court claims the rigged auctions increased profits for banks and deprived the city of millions of dollars in investment returns, the Daily Journal reports (sub. req.).

Some of the financial institutions named in the suit include Bear Sterns, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, AIG and Smith Barney, according to the story.

The suit says the scheme is also the subject of a federal grand jury probe in New York, the Continue reading...

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Title: Suit Cites E-mail as Proof of Huge Conspiracy to Rig Municipal Bond Rates



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