Johan Rosenberg News Today

(Bloomberg) -- Wall Street banks’ potential bill to settle bond price-fixing lawsuits has been slashed, falling to around $900 million from about $2.5 billion penciled in just a month ago.Most Read from BloombergRetirees Face $17,400 Cut to Social Security Benefits in 2033First American City to Tame Inflation Owes Its Success to Affordable HousingEcuador Presidential Candidate Assassinated, Suspect Shot DeadNaira Extends Drop From Record as Black-Market Dollar Rate SoarsEveryone Wants to ...

The Illinois case is part of several state-level lawsuits brought by Minnesota-based municipal advisor Johan Rosenberg, accusing banks of conspiring to set the interest rates of state-issued VRDOs artificially high.

It's one of four state cases accusing Wall Street banks of a "robo-resetting" scheme that kept interest on variable-rate debt artificially high.

Recent court decisions have the potential to up the ante in lawsuits accusing major banks of manipulating the variable-rate market.

The inclusion of swaps has the potential to increase claimed damages in the New York State lawsuit, though banks view swap materials as providing a potential defense.

The federal lawsuit brought by Philadelphia, San Diego and Baltimore on behalf of thousands of issuers is similar to a series of closely watched state whistleblower cases that claim banks manipulated interest rates on variable-rate bonds.

The office of Rob Bonta filed its objection to the dismissal with a California appellate court in San Francisco May 19.

Avoiding even the appearance of representing conflicting interests is important for attorneys and municipal advisors alike.