{"id":6836,"date":"2019-02-21T16:04:35","date_gmt":"2019-02-21T22:04:35","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6836"},"modified":"2019-02-21T16:04:35","modified_gmt":"2019-02-21T22:04:35","slug":"philadelphia-alleges-municipal-bond-rigging","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/philadelphia-alleges-municipal-bond-rigging\/","title":{"rendered":"Philadelphia Sues Citigroup, Goldman Sachs, Bank of America and Other Big Banks, Alleges Municipal Bond Rigging"},"content":{"rendered":"<p>\t\t\t\tThe city of Philadelphia, Pennsylvania is suing Bank of America (BAC), Goldman Sachs (GS), Citigroup (C), Wells Fargo &amp; Co. (WFC), Barclays Plc (BAR), JPMorgan Chase &amp; Co. (JPM), and Royal Bank of Canada (RBC) for allegedly <a href=\"https:\/\/www.investorlawyers.com\/institutional-investor-claims\/municipal-bond-fraud\/\">rigging rates <\/a>for <a href=\"https:\/\/www.investopedia.com\/terms\/v\/variable_rate_demand_note.asp\" target=\"_blank\" rel=\"noopener noreferrer\">variable-rate demand obligations (VRDOs)<\/a>. Philadelphia had issued over $1.6B of these bonds.<\/p>\n<p>VRDOs are tax-exempt municipal securities that can be redeemed by investors early because they are tendered to banks. The banks can then remarket the bonds to other investors while charging issuers a fee.<\/p>\n<p>According to <em>InvestmentNews,<\/em> the city is looking to represent a number of hospitals, municipalities, and universities with its lawsuit. The complaint contends that the banks worked with each other to manipulate the VRDO rates in secret so they could make hundreds of millions of dollars in unearned fees. The alleged rigging occurred between 2\/2008 and 6\/2016. The collusion purportedly involved the banks agreeing not to compete against each other for re-marketing services.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/philadelphia-alleges-municipal-bond-rigging\/\"  title=\"Continue Reading Philadelphia Sues Citigroup, Goldman Sachs, Bank of America and Other Big Banks, Alleges Municipal Bond Rigging\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The city of Philadelphia, Pennsylvania is suing Bank of America (BAC), Goldman Sachs (GS), Citigroup (C), Wells Fargo &amp; Co. (WFC), Barclays Plc (BAR), JPMorgan Chase &amp; Co. (JPM), and Royal Bank of Canada (RBC) for allegedly rigging rates for variable-rate demand obligations (VRDOs). Philadelphia had issued over $1.6B of these bonds. VRDOs are tax-exempt [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6839,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3762,4052,3922],"tags":[3013,3209,3237,3210,3296,3022],"class_list":["post-6836","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-investigations","category-institutional-investors","category-municipal-bonds","tag-bank-of-america","tag-citigroup","tag-goldman-sachs","tag-jpmorgan","tag-vrdo","tag-wells-fargo"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Philadelphia Sues Citigroup, Goldman Sachs, Bank of America and Other Big Banks, Alleges Municipal Bond Rigging &#8212; Investor Lawyers Blog &#8212; February 21, 2019<\/title>\n<meta name=\"description\" content=\"Philadelphia Sues Citigroup, Goldman Sachs, Bank of America and Other Big Banks, Alleges Municipal Bond Rigging\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/philadelphia-alleges-municipal-bond-rigging\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Philadelphia Sues Citigroup, Goldman Sachs, Bank of America and Other Big Banks, Alleges Municipal Bond Rigging &#8212; 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Investor Lawyers Blog &#8212; February 21, 2019","twitter_description":"Philadelphia Sues Citigroup, Goldman Sachs, Bank of America and Other Big Banks, Alleges Municipal Bond Rigging","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/2.21.19.jpg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/philadelphia-alleges-municipal-bond-rigging\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/philadelphia-alleges-municipal-bond-rigging\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Philadelphia Sues Citigroup, Goldman Sachs, Bank of America and Other Big Banks, Alleges Municipal Bond Rigging","datePublished":"2019-02-21T22:04:35+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/philadelphia-alleges-municipal-bond-rigging\/"},"wordCount":533,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/philadelphia-alleges-municipal-bond-rigging\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/2.21.19.jpg","keywords":["Bank of America","Citigroup","Goldman Sachs","JPMorgan","VRDO","Wells Fargo"],"articleSection":["Current Investigations","Institutional Investors","Municipal Bonds"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/philadelphia-alleges-municipal-bond-rigging\/","url":"https:\/\/www.investorlawyers.com\/blog\/philadelphia-alleges-municipal-bond-rigging\/","name":"Philadelphia Sues Citigroup, Goldman Sachs, Bank of America and Other Big Banks, Alleges Municipal Bond Rigging &#8212; 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