Australian Banks Accused of Rate Rigging Face Court Showdown
- Regulator’s cases against ANZ, Westpac and NAB to start Monday
- Banks’ reputations may be at stake more than their finances
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Five years after starting an interest rate-rigging probe, Australia’s financial regulator is poised for a court showdown with three of the nation’s biggest banks.
Barring any last-minute settlement, the Australian Securities & Investments Commission will proceed with its cases against Australia & New Zealand Banking Group Ltd., Westpac Banking Corp. and National Australia Bank Ltd. on Monday morning. ASIC alleges the banks’ traders sought to manipulate the benchmark bank bill swap rate -- used to price more than A$10 trillion ($7.8 trillion) in derivatives -- to benefit their institutions’ trading positions.