Royal Bank of Scotland Group (LON:RBS) and Bank of America have been sued on the other side of the Atlantic over their alleged roles in a conspiracy to rig prices in the $9.4 trillion European government bond market, Reuters has reported. The news marks a blow for the part government-owned UK lender which is still being plagued by its turbulent past.
RBS’ share price has been subdued in London this morning, having inched 0.50 percent lower to 258.60p as of 08:49 GMT, underperforming the benchmark FTSE 100 index which currently stands 0.02 percent higher at 7,184.90 points. The group’s shares have lost about 0.3 percent of their value over the past year, as compared with about a 0.5-percent gain in the Footsie.
RBS sued in the US
Reuters reported yesterday that RBS and Bank of America were sued in the US over their alleged roles in a conspiracy among eight banks to rig prices in the $9.4 trillion European government bond market. The proposed class-action complaint accusing the banks of violating federal antitrust law was filed on Monday night in District Court in New Haven, Connecticut, and followed a January 31 announcement by the European Union’s antitrust authority accusing the eight banks of being part of a cartel to distort bond prices from 2007 to 2012.
While the commission did not identify the eight banks, the newswire said that media reports had suggested that Bank of America and RBS are among them.
Analysts on lender
Credit Suisse, which is ‘neutral’ on RBS, boosted its price target on the shares from 280p to 285p this week, while last week, Deutsche Bank reiterated its ‘buy’ rating on the stock last week, valuing the stock at 296p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 306.31p.