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

CORPORATE TRAVEL MANAGEMENT POSTS STRONG FIRST HALF RESULT

CORPORATE Travel Management (ASX:CTD) battled headwinds including a falling Australian Dollar and an airline price wa...

SLATER AND GORDON FILES CLASS ACTION AGAINST BELLAMY'S

SLATER AND GORDON (ASX:SGH), with funding from IMF Bentham (ASX:IMF), has filed its class action against Bellamy...

BILLABONG'S SALES DEPARTMENT STILL STRUGGLING

SURFWEAR retailer Billabong International (ASX: BBG) hasn't posted any surprises to the ASX.

The Burleigh Head...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter