A pre-market announcement has put the Commonwealth Bank of Australia (ASX: CBA) share price on watch in early trade.
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Why is the Commonwealth Bank share price on watch?
Investors will be keeping an eye on the Aussie bank share after an update on its US-based class action. Commonwealth Bank this morning announced that it has reached agreement to settle the ongoing US Bank Bill Swap Reference Rate (BBSW) class action.
The class action commenced in 2016 in the New York District Court against Commonwealth Bank, other banks and brokers. Commonwealth Bank has today reached a settlement in relation to the US BBSW rate rigging allegations.
It becomes the latest of the Big Four banks to do so. Westpac Banking Corporation Ltd (ASX: WBC) settled its US class actions in October 2020 while Australia and New Zealand Banking Group Ltd (ASX: ANZ) reached a settlement yesterday.
What else has been happening for Commonwealth Bank?
The Commonwealth Bank share price will be one to watch in early trade following this morning's update. Shares in the Aussie bank fell last week in a softer week of trade for the S&P/ASX 200 Index (ASX: XJO).
That share price slide came despite a big announcement from Australia's largest bank. Commonwealth Bank announced it intends to launch its own buy now, pay later (BNPL) service to customers by mid-year.
The service will be offered through any merchants who accept credit or debit card payments, enabling people to pay off their purchases (up to $1,000) in instalments, similar to other BNPL offerings.
That put shares like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) under pressure late last week amid increased competition fears.
Foolish takeaway
The Commonwealth Bank share price will be one to watch in early trade after becoming the latest bank to settle 2016 class actions relating to BBSW products.
