As reported in the news, a whistleblower is claiming collusion among major banks to inflate municipal interest rates resulting in $3.6 billion of damages.
It will be interesting to see how the case unfolds, and whether it will ultimately be determined by using a popular automated bond tracking system whether collusion was in fact conducted.
In 2015, Johan Rosenberg was granted U.S. Patent No. 8,935,181 on an unusual invention: software that he claimed could ferret out Wall Street chicanery. With the help of MuniPriceTracker, Rosenberg combed through thousands of deals in the vast U.S. municipal-bond market. Now, after working for years under a cloak of anonymity, Rosenberg has finally stepped forward -- and put his name to some startling allegations. He says 16 banks colluded to set the interest rates artificially high on a certain kind of municipal debt, potentially profiting at taxpayers’ expense. Three false-claims lawsuits, in Illinois, Massachusetts, and California, are demanding $3.6 billion in damages.