ANZ makes deal on rates claim
ANZ has reached a last-minute settlement ahead of court action over alleged interest rate rigging.
The corporate regulator ASIC alleged ANZ, along with Westpac and NAB, engaged in market manipulation and unconscionable conduct by rigging the bank bill swap reference rate (BBSW).
ANZ was accused of 44 breaches of the law between 2010 and 2012, influencing the BBSW to “maximise its profit”.
The BBSW provides a benchmark for setting personal and commercial loan rates, and is one of the most important rates in the lending industry.
The maximum penalty for companies that breach the Corporations Act is $1 million for each count.
ANZ's and ASIC's “in-principle” settlement will now have its formal details negotiated.
Reports say ANZ is looking at a $50 million settlement, but the exact amount - or whether the bank will admit wrongdoing – remains unclear.
The Federal Court has stood down planned hearings for now.
But the case against NAB and Westpac is still live, and will be heard by the court over six weeks.