🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Australia's NAB reaches agreement with regulator over rate rigging

Published 27/10/2017, 08:21 pm
© Reuters.  Australia's NAB reaches agreement with regulator over rate rigging
CBA
-
ANZ
-
NAB
-
WBC
-

SYDNEY, Oct 27 (Reuters) - National Australia Bank NAB.AX , the country's No.3 lender by market value, on Friday said it had reached an agreement worth A$50 million ($38 million) with the corporate watchdog to settle a case over alleged manipulation of a key interest rate.

The Australian Securities & Investment Commission (ASIC) had filed a lawsuit last year, alleging three of Australia's top lenders had rigged the bank bill swap rate (BBSW) for profit between 2010 and 2012.

The BBSW is the primary interest rate benchmark used in Australian markets to price home loans, credit cards and other financial products. part of the settlement, NAB has agreed to a A$10 million penalty, A$20 million in costs to the ASIC and a A$20 million donation to a financial consumer protection fund.

The impact of the settlement, which is subject to court approval, will be reflected in NAB's 2017 financial year results, it said in a statement.

"We accept that we did not meet the high standards of professional conduct that ASIC, the community and NAB expects of itself, in that market during that period," NAB Chief Executive Officer Andrew Thorburn said in a statement.

The settlement involves NAB admitting that on 12 occasions in 2010 and 2011, its employees attempted to engage in "unconscionable conduct" in breach of the ASIC Act while trading in the BBSW market.

NAB will also acknowledge breaches of its licence obligations and agree to a so called 'Enforceable Undertaking' with ASIC, the lender added.

NAB and ASIC will make an application to the Federal Court for approval of the settlement, which may take a number of weeks to finalise.

Rival Australia & New Zealand Banking Group Ltd ANZ.AX , which faced similar allegations, reached a settlement earlier this week, leaving Westpac Banking Corp WBC.AX to slug it out with ASIC. Bank of Australia CBA.AX , the nation's No. 1 lender, is not part of ASIC's lawsuit

($1 = 1.3087 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.