ANZ Bank agreed to settle a court case brought by the Australian financial regulator that alleged the bank rigged one of Australia's key interest rates.
The settlement is reportedly worth $50 million, but the neither party would confirm the amount. The bank said in a press release it would make a more detailed statement at a later date. It is unclear whether ANZ settled the case with any admission of wrongdoing.
The Australian Securities and Investments Commission (ASIC's) case seeks financial penalties and a declaration by the court the banks engaged in unconscionable conduct.
Chat Room Evidence
The bank bill swap rate (BBSW) is a key rate at which banks lend to each other over a short period. It is one of the most important interest rates in the economy, providing a benchmark for the setting of a range of business loan interest rates.
ASIC is relying on evidence it obtained from the banks, including text messages between traders and internal bank chat room transcripts, to prove its case.
In 2013 and 2014, BNP Paribas, Royal Bank of Scotland and UBS accepted an enforceable undertaking from ASIC for allegedly rigging the bank bill swap rate in Australia.
