US: Credit Suisse, UBS sued by three pension funds

Three public pension funds, including the Orange County Employees Retirement System, have sued a half-dozen Wall Street banks, alleging they illegally conspired to control a corner of the stock market, leading to higher charges for the funds and thus less money for retirees.

The suit is being brought by the Iowa Public Employees' Retirement System, the Orange County Employees Retirement System and the Sonoma County Employees' Retirement Association. The suit accuses Bank of America, Credit Suisse, Goldman Sachs, J.P. Morgan Chase, Morgan Stanley (MS) and UBS of violating antitrust law by conspiring to overcharge investors and obstructing efforts to create competitive electronic exchanges, according to the documents.

Plaintiffs’ attorney Michael B. Eisenkraft, a partner at Cohen Milstein Sellers & Toll, said the banks for years have colluded to maintain “their power over this little-known-but-lucrative corner of Wall Street.”

“In doing so, they deprive investors of money that should flow to retirees, families and other hard-working Americans,” he said in a statement.

Bank of America, JPMorgan, UBS, Credit Suisse and Morgan Stanley declined to comment. Goldman Sachs said it didn't have an immediate comment.