Thursday, 25 April 2024
ANZ settles with ASIC on first day of bank interest rate rigging trial
ANZ has settled with the Australian Securities and Investments Commission on the first day of a federal court trial over alleged interest rate rigging.
Asic on Monday asked the court to stand down its trial against ANZ, Westpac and National Australia Bank for 48 hours because it had reached an agreement with the first party.
“An agreement in-principle has been reached between the plaintiff and ANZ to settle the claims,” said the counsel for Asic, John Karkar QC.
The barrister said Asic and ANZ needed time to compile the agreement. The agreement would affect the matters involving NAB and Westpac, Asic noted.
“The other cases cannot properly proceed until the board can approve the settlement with ANZ bank,” Karkar said.
Justice Jonathan Beach has adjourned the trials until Wednesday.
After the brief court session, ANZ immediately released a statement to confirm it had reached a “confidential in-principle agreement” with Asic. The bank said it would make a more detailed statement later.
ANZ added it had prepared for the financial effect of its settlement with Asic. “Based on the in-principle agreement, the financial impact to ANZ will be reflected in the 2017 financial year results and is largely covered by the provisioning held as at 31 March 2017.”
Asic started federal court proceedings against ANZ in March 2016 for alleged “unconscionable conduct and market manipulation” over the rate at which banks lend each other money.
The regulator began investigating major banks in 2012 over the integrity of their past bank bill swap rate submissions.
ANZ was the first bank to face legal action over suspicions traders had manipulated rates to make more money.
It was followed by Westpac, which Asic alleged had engaged in market manipulation to maximise its profit or minimise its loss.
NAB was the third financial institution to face legal action from Asic over allegations it manipulated the bank bill rate.
Re-disseminated by The Asian Banker from The Guardian
