ASIC TAKES ON NAB OVER RATE RIGGING

Written on the 7 June 2016

ASIC TAKES ON NAB OVER RATE RIGGING

THE Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings against National Australian Bank (ASX:NAB) alleging unconscionable conduct and market manipulation.

The allegations relate to NAB's involvement in setting the bank bill swap reference rate (BBSW).  The BBSW is the primary interest rate benchmark used in Australian financial markets, administered by the Australian Financial Markets Association.

It is alleged that NAB traded in a manner that was unconscionable and intended to create an artificial price for bank bills on 50 occasions between 8 June 2010 and 24 December 2012.

ASIC alleges that NAB had a large number of products which were priced or valued off BBSW and that it traded in the bank bill market with the intention of moving the BBSW higher or lower.

ASIC suggests that NAB was seeking to maximise its profit or minimise its loss to the detriment of those holding opposite positions to NAB's.

NAB chief risk officer David Gall says the bank has fully cooperated with ASIC's review and is taking the allegations seriously.

"We do not agree with ASIC's claims which means they will now be settled by a court process," says Gall.

"As part of ASIC's investigation NAB has provided emails, instant chat messages and telephone conversations involving out employees.

"We remain committed to serving our customers and ensuring our people demonstrate the values and behaviours the community expects of us."


Latest News

VILLAGE ROADSHOW PARKS HURT BY DREAMWORLD TRAGEDY

QUEENSLAND visitors to Village Roadshow (ASX: VRL) theme parks have declined 12 per cent in the wake of four deaths a...

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter