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DPP commences proceedings against ANZ
The Commonwealth Department of Public Prosecutions (CDPP) is bringing an action against ANZ regarding alleged cartel conduct.
Jerome Doraisamy
CDPP advised the bank late Thursday night that it intends to commence proceedings against ANZ for being knowingly concerned in alleged cartel conduct by the joint lead managers of the bank’s underwritten Institutional Equity Placement of approximately 80.8 million shares in August 2015.
The bank understands, it noted in a statement, that CDPP will also be bringing an action against ANZ group treasurer Rick Moscati.
ANZ is also currently under investigation by the Australian Securities and Investments Commission (ASIC) in relation to the placement.
ASIC is looking into whether the bank’s announcement from 7 August 2015 should have stated that the joint lead managers took up approximately 22.5 million shares of the placement, representing 0.91 per cent of total shares on issue at that time.
On Friday, ANZ chief risk officer Kevin Corbally said: “We believe ANZ acted in accordance with the law in relation to the placement and on that basis the bank intends to defend both the company and our employee.”
Moody's Investors Service vice president Frank Mirenzi said the consequences of the potential proceedings could be significant and would be credit negative for ANZ.
"Whilst, at this stage, there is material uncertainty with respect to any potential outcomes from these proceedings, in the short-term they are likely to create further challenges for the bank's brand and reputation, at a time when Australian bank conduct and procedures are coming under the scrutiny of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry," he said.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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