Legal Action Against Australian Bank Could Affect NZ

This is source I found from another site, main source you can find in last paragraph

After initially saying it would "vigorously" defend itself against allegations of inter-bank rate rigging, ANZ has settled with the corporate regulator on the first day of a Federal Court trial.

The Australian Securities and Investments Commission on Monday asked the court to stand down its trial against ANZ, Westpac and National Australia Bank for 48 hours because of the out-of-court settlement.

"An agreement in principle has been reached between the plaintiff and ANZ to settle the claims," counsel for ASIC John Karkar QC told the Melbourne court.

He said ASIC and ANZ needed time to compile the agreement, which will also affect ASIC's cases with NAB and Westpac.

"The other cases cannot properly proceed until the board can approve the settlement with ANZ bank," Mr Karkar said.

Justice Jonathan Beach adjourned the trials until Wednesday.

Following the brief court session, ANZ immediately released a statement to confirm it had reached a "confidential in-principle agreement" with ASIC.

The bank said it will make a more detailed statement later.

"Based on the in-principle agreement, the financial impact to ANZ will be reflected in the 2017 Financial Year results and is largely covered by the provisioning held as at 31 March 2017," ANZ said.

ASIC started Federal Court proceedings against ANZ in March 2016 for alleged "unconscionable conduct and market manipulation" over the bank bill swap rate.

The BBSW, as it is known in financial markets, is a key benchmark used to price billions of dollars of loans, bills, bonds and derivatives.

The rate determines what banks charge to lend money to each other and is not directly linked to mortgage or other retail lending interest rates.

ASIC began investigating major banks in 2012 over the integrity of their past bank bill swap rate submissions.

ANZ was the first bank to face legal action over suspicions traders manipulated rates to make more money and rejected ASIC's allegations in 2016.

"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," ANZ chief risk officer Nigel Williams said in a statement on March 4, 2016.

ASIC alleged ANZ manipulated the market to influence the BBSW "in such a way as to advantage ANZ over others" on 44 occasions between March 2010 and May 2012.

It wanted the Federal Court to find the bank had failed to comply with financial services laws and impose a penalty.

Westpac was the second bank to face legal action, followed by National Australia Bank.

This is source I found from another site, main source you can find in last paragraph

Source : https://nz.finance.yahoo.com/news/anz-settles-asic-rate-rig-002212707.html

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