The Australian Bank is under siege after reports show misconduct regarding important financial trading rate. The local corporate regulators are accusing the Westpac Banking Corp. and took the whole debacle to court; sources are stating that the whole proceeding is expected to take at least few weeks before any possible outcomes.
The Australian Securities and Investment Commission or the ASIC is pressing the charges as they believe that Westpac played a vital role in the rates rigging and manipulation. As of current, Westpac is currently sitting as the second largest lender in Australia.
ASIC vs. Westpac
On an earlier meeting, the ASIC addressed their case and started stating that Westpac has been influencing the Bank Bill Swap Rate or most commonly known in the Australian finance system as BBSW. This means that the financial institution is the culprit behind the billions of dollar worth of products that were severely affected.
The ASIC also mentioned several banks which are also tagged with the rate manipulation. The banks are as follows; National Australia Bank Ltd, and Australia and New Zealand Banking Group Ltd. According to the report, the banks managed to rig the BBSW from 2010 to 2012 which resulted in inflated profits.
The regulators believe that Westpac has been one of the biggest banks that have rigged and manipulated the BBSW. According to ASIC’s report, the bank has been seen controlling the bank bill purchase with days tallying a 100% acquisition.
NAB and ANZ
According to a recent report, the National Australian bank and the Australia and New Zealand have been reported to comply and settle the issue as soon as possible, even before the first hearing. This puts Westpac alone against the case filed; it is looking to combat 16 counts of unconscionable conduct as opposed to NAB and ANZ’s 40 counts.
Reports have indicated that Westpac has been silent all throughout the debacle; a company spokesman mentioned that they are prohibited to comment on the allegation and denies the whole cases filed against them. The bank is looking to argue in the
The current cases are similar to other international banks that are also charged with rate rigging, and this also resulted in billions of dollars fine and some are even convicted in the UK courts.
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