ASIC awakens from an 18 year Slumber Party. Medcraft needs to ask critical Question: "And how long have you chaps been doing this sort of thing?"
ANZ Bank could face class action from ASIC after investigation revealed the bank 'rigged interest rates'
- Law firm Maurice Blackburn is investigating the potential class action
- ASIC found ANZ Bank to be manipulating the bank bill swap rate (BBSW)
- This is a critical benchmark interest rate at which banks lend each other
- On Friday ASIC launched Federal Court action against ANZ
- ANZ has rejected the allegations and will vigorously defend them
http://www.dailymail.co.uk/news/article-3479669/ANZ-Bank-face-class-action-ASIC-investigation-revealed-bank-rigged-rates.html
The Australia and New Zealand Banking Group (ANZ) could be facing a hefty class action after a corporate watchdog alleged the bank had rigged a critical interest rate in the financial system.
Leading litigation firm Maurice Blackburn is investigating the potential class action after the Australian Securities and Investments Commission (ASIC) examined ANZ's conduct along with other lenders who may be scrutinised, Fairfax Media has reported.
ASIC launched Federal Court action against ANZ on Friday after a long-term investigation revealed that banks were manipulating the bank bill swap rate (BBSW), a key interest rate.
The BBSW is a critical rate at which banks lend each other for short periods, and it provides a benchmark for the setting of a range of business loan interest rates.
The regulator claims that ANZ intended to create an 'artificial price' in the BBSW on 44 days between March 2010 and May 2012.
Since mid-2012 ASIC has been investigatin the practices of 14 panel bank participants in the Australian interbank BBSW market covering the period 2007 to 2012.
In a statement, ANZ chief risk officer Nigel Williams said the bank rejects the allegations and that the claims were based on a misunderstanding of the relevant market and limited case law in the area.
'We believe the Commission’s statement of claim is based on a misunderstanding of how bank bill issuance and interest rate risk management operates and the limited case law which applies to this area,' Mr Williams said.
The watchdog argues that ANZ's behaviour could damage the reputation of BBSW as a reliable benchmark rate, the operation of the nation's financial markets and cause 'financial detriment' to customers with the opposite exposure to the BBSW.
ASIC reportedly launched the class action after the bank disagreed with the regulator's demanded terms of conditions, which included an admission of guilt.
A spokesperson for Maurice Blackburn confirmed that the law firm is investigating the matter and there is potential for a class action involving a potentially large pool of victims.
Mr Williams said the bank has cooperated fully with ASIC's investigation over many months, at a cost of many millions of dollars.
'Our practices in the BBSW market were consistent with Australian market practices in wholesale financial markets and we reject ASIC’s characterisation of the transactions in question.'
The bank said that chat messages between traders was an issue they will continue to review.
'We have already dealt with chats and behaviours that breach our Code of Conduct through internal disciplinary action against the individuals involved,' he said.
The bank's shares initially fell once the class action was announced.
ANZ said the legal action is likely to take a considerable time to reach a resolution through the courts and the matter of penalties is uncertain.
Daily Mail Australia has contacted ASIC for comment.
Read more: http://www.dailymail.co.uk/news/article-3479669/ANZ-Bank-face-class-action-ASIC-investigation-revealed-bank-rigged-rates.html#ixzz42CFcOp00
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