ASIC chief Greg Medcraft doesn’t fear bank battle
Last month ANZ chief Shayne Elliott’s overhaul of the bank’s wealth business was overshadowed by the first legal action over rate rigging.
On Tuesday evening ASIC moved against Westpac, ensuring that its 199-year anniversary and announcement of the first recipients of its $100 million scholars bequest would be overshadowed by questions over bank conduct.
From the outside it is tempting to see the rash of action as a clearing of the decks by an Australian Securities & Investments Commission chairman coming to the end of his term.
Medcraft’s time is up next month and, while he wants to continue, the federal government has at least allowed the perception that he will be replaced to flourish by delaying any announcement and appointing headhunters Heidrick & Struggles to uncover and interview potential successors.
But ASIC was up against the clock in its actions, with a statute barring legal action any later than six years after the offence. The earliest of them — including some colourful phone transcripts of bank executives — would have expired on April 6, the day of Westpac’s birthday bash. Another expires on April 30, and another on May 20.
Given the frequent high-level contact between the bank and the regulator over this issue it’s a fair bet Westpac knew when ASIC would move.
That might suggest National Australia Bank and Commonwealth Bank, which remain under investigation for similar offences, have a pretty good idea of whether and when they will face any action.
http://www.theaustralian.com.au/business/asic-chief-greg-medcraft-doesnt-fear-bank-battle/news-story/7324ea783d660852d87e9cb3088d1d90