Westpac Chiefs Race to Save Their Jobs as Scandal Engulfs Bank
- Chairman Maxsted has two weeks to head off investor revolt
- Lawsuit triggers probes by banking, securities regulators
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As the fallout widens from Australia’s worst-ever alleged breach of money-laundering laws, Westpac Banking Corp. Chairman Lindsay Maxsted has a little over two weeks to win over shareholders and avoid the ignominy of his entire board being ousted.
More than A$7.5 billion ($5.1 billion) has been wiped off Westpac’s market capitalization since the financial crimes agency slapped the lender with a civil lawsuit on Nov. 20 alleging it breached money-laundering laws 23 million times, including failing to detect payments to child pornographers in the Philippines.