Westpac Banking Corp is ASIC's next markets target
April 5 2016
- by Sarah Thompson
- Anthony Macdonald
- Joyce Moullakis
http://www.afr.com/street-talk/westpac-banking-corp-is-asics-next-markets-target-20160404-gny0vk
Westpac Banking Corp will be the latest major lender to be targeted by action in its treasury division by the corporate regulator, sources told Street Talk.
This column revealed earlier on Tuesday that ASIC was readying action against a second major bank in relation to alleged market misconduct, chats and potential rigging of the bank bill swap rate. ANZ Banking Group is already the subject of court action spearheaded by the regulator.
An Australian Securities and Investments Commission spokesman declined to comment on Tuesday afternoon.
"Westpac, along with a number of other banks, is continuing to cooperate with an industry-wide investigation by ASIC into trading practices in relation to the bank bill swap rate," Westpac spokesman David Lording told Street Talk.
Westpac's Brian Hartzer tells staff bank will defend ASIC claim
Apr 5 2016
- by Sarah Thompson
- Anthony Macdonald
- Joyce Moullakis
Westpac Banking Corp's chief Brian Hartzer has told staff the lender rejects allegations by the corporate regulator relating to misconduct in trading of the bank bill swap rate.
In a memo obtained by Street Talk, Hartzer said: "Westpac rejects the allegations and will be vigorously defending ASIC's court proceedings.
"The operation of the interbank short-term money market – along with the process of managing a bank's balance sheet – is highly complex, and trading activity occurs for a range of valid reasons. We disagree with ASIC's interpretation of the communication between employees and their assessment of trading activity given the complexity of strategies involved."
ASIC, the Australian Securities and Investments Commission, has alleged 16 instances of misconduct linked to the bank bill swap rate. The alleged instances took place between April 2010 and June 2012.
Street Talk revealed ASIC was targeting Westpac in court action earlier on Tuesday. The regulator has lodged proceedings in the Federal Court, adding to action against ANZ Banking Group.
"As you know, Westpac takes any allegations of misconduct very seriously. Where we or our people have been found to do the wrong thing, we take action to set it right," Hartzer said in the memo.
"Along with other banks, we have been cooperating with ASIC on this complex investigation for close to three years. In that time, ASIC has reviewed over 12 million Westpac documents."