In a recent post, we discussed the first two settlements in
the GSE Bonds Antitrust litigation which then totaled $49.5 million. (Well, $29.5
Million was the initial settlement amount, as Goldman’s settlement occurred
after the first notice was issued. We are nothing if not precise here at CCC.) Earlier
this week the remaining 12 defendant banks added $337 making the grand total $386.5 million.
A press release about the case issued by the Pennsylvania
state treasurer’s office touted the potentially high recovery percentage: “Assuming
class-wide damages of $857 million, the total recovery of $386.5 million
represents approximately 58.4% of the 16 defendants’ proportionate share of
In addition, defendants also agreed to “rigorous” employee
training, to establish a “culture of compliance,” to “dedicate resources for
oversight,” and to “not fix prices for bonds (or other things) any more.” (The
last one I made up, but it's implied for sure.)
As we noted in our last post, eligible GSE Bonds are debt
securities issued between 2009 and 2019 by four government sponsored
enterprises: Federal National Mortgage Association, Federal Home Loan Mortgage,
Federal Farm Credit Banks, and Federal Home Loan Banks. Anyone with any knowledge
of the bond market knows that this would entail a vast number of securities.
At first, the claims administrator claimed they could not
provide CUSIPs, but after many queries by claimants for a definitive CUSIP list
(including by the team at CCC), the administrator finally relented and posted a
list of over 84,000 identifiers. Of those, over were 64,000 unique, with some also
appearing in ISIN format.
“Oh, phew. Only 64,000. What a relief… So how am I supposed
to search for all of that in my data?”
You won’t have to if you hire CCC. With a potential recovery
of nearly 60% (minus attorneys fees and administrative costs, of course) this
is a settlement that will be worth the effort. CCC can help ensure that every
one of those eligible securities are run against your data.
It’s also worth noting this caveat from the administrator
about the list they issued: “This CUSIP list may not be complete and
all-inclusive.” In other words, the bond market is so big that some securities eligibilty will have to be confirmed on a case by case basis. With CCC on your side, we can help determine if bonds that do not appear on this
Whether it 64,000. 84,000, or some other number of eligible identifiers, CCC can find all of them, and ensure that you and
your clients file for every eligible claim.