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

THE 2017 MELBOURNE TOP 50 COMPANIES REVEALED: NUMBERS 40 TO 31

Our countdown to the 2017 Top 50 Melbourne companies continues with the next 10 on the list from 40 to 31, which f...

HEALTH INSURER NIB ACCUSED BY ACCC OF MISLEADING ITS MEMBERS

THE COMPTITION regulator has launched proceedings in the Australian Federal Court against NIB Health Funds Limited (N...

CANNABIS COMPANY SECURES PERMITS FOR NEW PLANTS TO BEGIN CULTIVATION

MEDICAL Cannabis company Cann Group Limited (ASX: CAN) will receive its first plant material and start cultivation of...

CHARTER HALL SNAPS UP SALAMANDER BAY CENTRE FOR $174M

RETAIL investment trust Charter Hall (ASX: CQR) has purchased the regional Salamander Bay Centre in New South Wales f...

Related News

HEALTH INSURER NIB ACCUSED BY ACCC OF MISLEADING ITS MEMBERS

THE COMPTITION regulator has launched proceedings in the Australian Federal Court against NIB Health Funds Limited (N...

AFTERPAY GOES TRANS-TASMAN WITH TRADE ME DEAL IN NEW ZEALAND

AFTERPAY Holdings Ltd (ASX: AFY) has entered into an agreement with New Zealand trading site Trade Me Group Ltd (A...

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

SLATER AND GORDON TAKES SPOTLESS TO COURT

SPOTLESS Group (ASX: SPO) has been hit by a class action launched by Slater and Gordon (ASX: SGH) in the Federal C...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter