Pennsylvania Accuses Financial Firms Of Bond Price-Fixing

May 24, 2019

Pennsylvania's treasury department is accusing about a dozen large financial firms of inflating the price of bonds issued by Fannie Mae and Freddie Mac over seven years.

Thursday night's federal court filing by Pennsylvania Treasurer Joe Torsella cites what his office says is evidence from a "cooperating co-conspirator" in a U.S. Department of Justice investigation into price-fixing in the secondary market for bonds issued by government-controlled companies.

The filing includes brief transcripts of what it says are online "chats" by traders at firms that deal the bonds agreeing to fix bond prices. The filing is part of an ongoing case involving several pension funds and other plaintiffs.

Torsella's office says it's working to determine how much money Pennsylvania lost because of the alleged price-fixing.

No criminal charges have been filed.