ANZ reinstates suspended bank bill swap traders
Jonathan Shapiro
Senior Reporter
ANZ Banking Group has reinstated four of the seven traders it stood down 18 months ago as a result of investigations into potential manipulation of the bank bill swap rate.
In an e-mail to staff members the head of institutional banking Shayne Collins said the four traders would return to work "in the coming weeks with no significant findings" relating to conduct breaches.
The reinstatements come as ANZ pledged to vigorously defend itself against court action taken by the Australian Securities and Investment Commission that is suing the bank for alleged market manipulation of the bank bill swap rate.
The AFR had previously reported that three of the seven traders had been terminated over conduct breaches. The sackings did not relate to market trading practises as a result of the probe.
Among two of the seven traders that have left the bank were Etienne Alexiou, who is suing the bank over his dismissal and Jason Pritchard, another senior trader who was referenced extensively in court documents lodged by the Australian Securities and Investment Commission.
In his dismissal letter presented to the courts, ANZ said that Mr Alexiou's termination was not related to the bank bill swap rate investigation but the offensive content of electronic chats.
The four traders who have had their roles reinstated were in 'market facing' positions in which they traded directly with clients. One of the traders is understood to have returned to Western Australia to take up a new role.
ANZ along with Westpac are fighting court action taken by ASIC against them for allegedly manipulating the bank bill swap rate, claiming that their traders were engaging hedging the bank's interest rate rather than fixing markets to make profits.
Their decision to defend their actions comes as bank conduct becomes a heated political issue. Last week, after ASIC brought action against Westpac, Opposition leader Bill Shorten called for a royal commission against the banks, a move that has been backed by several Coalition members of parliament.
Meanwhile Mr Alexiou is suing ANZ for $30 million claiming unfair dismissal. He was initially stood down as part of the BBSW investigation but was sacked after the bank found lewd Bloomberg chats that breached the bank's code of conduct.
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