Recently, we saw Australia and New Zealand Banking Group Ltd (ANZ) and National Australia Bank Ltd (NAB) coming to a settlement with ASIC (Australian Securities and Investments Commission) on the Bank Bill Swap Rate (BBSW) case, wherein the banks were said to have rigged the key interest rate for financial gains between 2010 and 2012. However, what has blown up the market is the Westpac’s (ASX: WBC) move to proceed in the Federal Court against any settlement and challenging the allegations.
The whole matter was adjourned last week as ASIC expected the three banks to admit the engagement in unethical practice as part of the settlement agreement. The banks then refused to admit liability at the expense of exposure to future class actions from customers. While ANZ and NAB have now been directed for a penalty hearing in November with regards to the settlement, wherein NAB has been reported to bear a $50 million payment; Westpac had been in discussions with ASIC and holding firm against the allegations.Lately, the banking sources have indicated that ANZ and NAB, in a way, have agreed to have demonstrated an unconscionable conduct without any market manipulation.
WBC stock edged up 0.6% on October 30, 2017. The bank has otherwise been under slight pressure since the announcement being made on refunding about 200,000 customers holding packaged accounts and who did not automatically receive the benefits they were entitled to.The refund is said to be of an order of about $65 million.
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