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ANZ, NAB confirm US class action over rate rigging accusations

Thursday, 18 Aug 2016 12:26:52 | Sue Lannin

All four major banks are expected to eventually be caught up in ASIC's action. (AAP)

ANZ and NAB have both confirmed they are among 17 banks and two international broking houses named in a class action relating to the alleged rigging of the bank bill swap rate (BBSW) and bank trading in the United States.

The complaint was launched by two US-based investment funds and a derivatives trader, and the case has commenced in the United States District Court for the Southern District of New York.

"The action names a number of defendants, including NAB, and references the proceedings brought by the Australian Securities and Investments Commission (ASIC) in relation to BBSW," NAB said in a statement.

"As we have stated previously, NAB does not agree with the claims by ASIC in relation to BBSW."

ANZ said it would be "vigorously defending the US class action complaint".

"ANZ notes there has been no allegation by ASIC of collusion between it and other institutions," the bank said in a statement.

Macquarie, HSBC among those in class action

Among the Australian and international banks being sued are ANZ, NAB, Westpac, Macquarie, Deutsche Bank, HSBC, JP Morgan, and Citi.

The plaintiffs also include US commodities trader Richard Dennis, whose nickname is the "Prince of the Pit."

One source with knowledge of the matter told the ABC that the lawsuit was speculative in nature and was based on ASIC's civil case against ANZ, NAB and Westpac for alleged manipulation of the BBSW.

The Commonwealth Bank is also expected to be included in ASIC's case.

ASIC has already accepted enforceable undertakings from UBS, BNP Paribas and the Royal Bank of Scotland in relation to the BBSW fixing scandal.

BBSW is the rate set in a five minute window everyday that determines what banks charge to lend to each other.

For banks, small differences in the rate that is set can equal many millions of dollars in profits or losses.

For the average consumer, the BBSW is a benchmark rate on many corporate loans, and can affect business loans, mortgages and credit cards.

ASIC in June said it would take three of Australia's major banks - NAB, ANZ and Westpac - to the Federal Court over the alleged rigging, with the corporate regulator describing some of the banks as being involved in "unconscionable conduct and market manipulation".

AustraliaPlus


 

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