Australia and New Zealand Banking Group Ltd.’s (ASX: ANZ) stock slipped by 0.03% while National Australia Bank Ltd.’s (ASX: NAB) stock edged lower by 0.45% on November 10, 2017 while the banks received a green chit with regards to their settlements for the high-profile rate-rigging BBSW (benchmark bank bill swap rate) case. Federal Court has approved the settlements reached between the regulator, Australian Securities and Investments Commission (ASIC), and the banks based on the hearing attended by a majority of legal fraternity personnel while Westpac witnessed the outcome and seems to be gearing up to fight the case in the near term. The banks have admitted about manipulating the bank bill swap rate to their advantage indicating for an unconscionable conduct.
Based on the settlement, ANZ and NAB are said to collectively vent out about $100 million while the Court gave the judgment indicating the behaviour of the banks to be taken as shocking and disgusting by the public. Each of the banks will be signing an enforceable undertaking and paying a penalty of $10 million, $20 million to a financial consumer protection fund nominated by ASIC and another $20 million to cover the costs relating to the case.
It has been highlighted that the banks having the onus to build trustworthy institutions have failed in their duty to provide the public with confidence in their respective dealings.
Meanwhile, Westpac has been standing firm on fighting the allegations under a courtroom battle with Australia’s corporate regulator.
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