Westpac May Need to Raise Funds to Pay Money-Laundering Penalty
- Westpac brand has been ‘tarnished’ by scandal, Jefferies says
- Analysts expecting Westpac to pay about A$1 billion penalty
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Westpac Banking Corp. may be forced to raise more funds from shareholders to help cover the cost of a fine stemming from allegations of the biggest violation of money-laundering laws in Australia’s history, according to analysts.
The bank is facing allegations from Australia’s financial crimes agency that it has breached rules more than 23 million times, including failing to detect payments to child pornographers. Brian Hartzer yesterday resigned as CEO and will be replaced by Chief Financial Officer Peter King from Dec. 2 ahead of a global search for a permanent CEO.