Potential Penalty in Australia Rate Cases Dwarfed by Bank Profit
- Civil penalties haven’t been revised since 2001 legislation
- Hearings in rate rigging cases resume next week in Melbourne
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Three of Australia’s largest banks face maximum potential penalties of A$231 million ($173 million) if they lose civil suits related to alleged rigging of an interest rate benchmark, a fraction of their combined first-half profits of A$10 billion.
The Australian securities regulator has filed separate legal actions against
Australia & New Zealand Banking Group Ltd., National Australia Bank Ltd. and Westpac Banking Corp., alleging the lenders profited by manipulating the bank bill swap rate, a key Australian interest rate benchmark. The lenders have denied any wrongdoing and vowed to defend the suits, which resume next week in Melbourne.