ANZ facing action over .5bn placement

Share
ANZ facing action over .5bn placement

As new bank equity flooded the market, ANZ shares closed 7.5 percent lower on August 7, 2015, when the Melbourne-based lender announced it had completed the institutional component of the raising, according to a Reuters analysis.

ANZ said it would not be providing further comment at this time.

The criminal charges allege cartel arrangements made during an underwritten, institutional equity share placement in August 2015.

"I do appreciate that there was a level of surprise that we moved so quickly and through a placement", Mr Smith said in August 2015.

ANZ said it was notified by ACCC late yesterday and is co-operating with ASIC in the investigation.

The Australian Competition and Consumer Commission (ACCC) said in a statement on Friday that the matter stems from a 2.5-billion-Australian dollar (1.89 billion US dollar) share placement in August of 2015, when the Australian Prudential Regulatory Authority required the nation's biggest lenders to strengthen their exposure by raising capital.

"If the ACCC believes there are matters to address, these should be clarified by law or regulation or consultation", it said.

"Underwriting syndicates exist to provide the capacity to assume risk and to underwrite large capital raisings, and have operated successfully in Australia in this manner for decades". ANZ said it would also fight the accusations against Moscati. The ACCC refers serious cartel conduct to the CDPP for consideration of prosecution in accordance with the Memorandum of Understanding between the CDPP and the ACCC regarding Serious Cartel Conduct.

"Any such allegation should be considered in the context that ANZ's shares are bought and sold freely by thousands of shareholders in volumes representing hundreds of millions of dollars every business day, including for the period in question".

The stakes are high for each of the three banks: under Aussie cartel laws, companies can be fined up to 10 percent of their turnover or three times the profit gained, while executives can face jail terms of up to 10 years if found guilty.

"Resorting to criminal charges against the ANZ and others would suggest that the authorities feel that they have a particularly strong case", Grant said.

ANZ shares dropped 60 cents - or 2.2 per cent - this morning to $26.61, the worst of the big banks.

Share

Advertisement

Related Posts

Ontario Premier Kathleen Wynne admits she will lose provincial election
Ford had little to say about the announcement, noting only that the election is about change and people are fed up. Therefore, she says people should vote Liberal to ensure the other parties can not win anything except a minority.

Jeep to launch 10 hybrid and 4 EV models by 2022
Citing IHS Markit, Fiat Chrysler believes that the SUV market in India is likely to double to 1.6 million units by 2022. Fiat is already working on the next-generation 4X4 Panda and it will serve as a ideal base for the upcoming baby Jeep.

England vs. Nigeria - Football Match Report
The 22-year-old reacted quickest to fire home on the rebound after former Watford striker Odion Ighalo struck the post. Sterling lay on the second goal for captain Harry Kane after Cahill had headed England in front inside seven minutes.

China rejects ‘ridiculous’ US accusation of South China Sea militarisation
That's a core competency of the United States military that we've done before. Washington also says Beijing could use the islands as military bases.

Donald Trump signs bill for terminal patients to try unproven drugs
The bill also offers some legal protections for pharmaceutical companies, doctors or others involved in providing the treatment. President Trump signed the "Right to Try" bill into law on Wednesday, calling it a measure that "will help a lot of people".

Vehicle crashes onto field during baseball game, 1 killed
Two more teams were playing a Little League game across the street. "There were a lot of people there". Police are asking anyone else with images or video of the crash to share it with investigators.

Belgium's Vincent Kompany injury doubt for World Cup after hurting groin
This was only the fourth time that Belgium had faced a side in the top 40 of Fifa's world rankings since Martinez was appointed in August 2016.

Trump lawyers' letter to Mueller challenges subpoena
Russian Federation has denied any interference and Trump has repeatedly said there was no collusion or obstruction of justice. In a Saturday tweet, Trump asked whether the special counsel or Justice Department had leaked the letter to the media.

Samsung doubles the number of expressive stickers for AR Emoji to 36
From the looks of it, the Galaxy A9 Star Lite resembles the Galaxy A6 and could be a rebranded version of the Galaxy A6 in China. There is 16GB of internal storage in the phone , expandable via microSD card (up to 256GB).

Reeking passenger caused vomiting, fainting and emergency landing
It is not known whether that relates to the man himself, or the other passengers who were suffering because of the smell. After the pilot reported "passengers on the rampage", the plane landed in Vienna so the men could be removed.

© 2015 ExpressNewsline. All Rights reserved.