Banks don't want to settle BBSW case with ASIC...Turnbull 'victory' unlikely to shake markets
Majors to face down ASIC in court
After months of deliberation, three of the major banks have decided to battle ASIC in court, the Australian Financial Review reports. ANZ, NAB and Westpac are being sued by ASIC over alleged manipulation of the benchmark Bank Bill Swap Rate (BBSW), which determines the rates banks should lend to each other.
NAB could face a fine of $52m, ANZ of $44m and Westpac of $16m, and the AFR reports that sources at the latter two banks said the banks had no intention of settling the case. The banks say that their actions were appropriate to hedge interest rates in a highly competitive market. ASIC, who have a legal ‘war chest’ of $80m are suing the banks for both market manipulation and unconscionable conduct.
The case for all banks will come to court in the second half of 2017. The AFR noted that Commonwealth Bank are also expected to be served with court papers, and suggested that if Commonwealth Bank do settle this could put pressure on the other banks to do the same.
Turnbull ‘victory’ unlikely to shake markets
(Bloomberg) -- Prime Minister Malcolm Turnbull declared victory in Australia’s election, though more than a week after voting day it remains unclear if his Liberal-National coalition has enough seats to form a majority government.
“This is a great day,” Turnbull, 61, told reporters in Sydney on Sunday, hours after opposition Labor leader Bill Shorten phoned him to concede. “It is vital that this parliament works.”
Either way, the election has raised questions about Turnbull’s leadership, and left him without a strong mandate for much-needed economic and fiscal reforms. S&P Global Ratings lowered the outlook on Australia’s AAA credit rating to negative from stable on Thursday, saying the result potentially dented the government’s prospects for reining in a budget deficit forecast to reach A$37.1 billion ($28.1 billion) in the year through June 2017.
The focus will now turn to the likely make-up of the upper house, where Turnbull will have to negotiate with disparate independents and minor parties to pass savings measures.
“The immediate market implications are minor, with markets more focused on global than local events,” said Paul Bloxham, chief Australia economist at HSBC Holdings Plc in Sydney. “However, the more complex political environment is less conducive to reform, which could weigh on Australia’s medium-term growth prospects.”
After months of deliberation, three of the major banks have decided to battle ASIC in court, the Australian Financial Review reports. ANZ, NAB and Westpac are being sued by ASIC over alleged manipulation of the benchmark Bank Bill Swap Rate (BBSW), which determines the rates banks should lend to each other.
NAB could face a fine of $52m, ANZ of $44m and Westpac of $16m, and the AFR reports that sources at the latter two banks said the banks had no intention of settling the case. The banks say that their actions were appropriate to hedge interest rates in a highly competitive market. ASIC, who have a legal ‘war chest’ of $80m are suing the banks for both market manipulation and unconscionable conduct.
The case for all banks will come to court in the second half of 2017. The AFR noted that Commonwealth Bank are also expected to be served with court papers, and suggested that if Commonwealth Bank do settle this could put pressure on the other banks to do the same.
Turnbull ‘victory’ unlikely to shake markets
(Bloomberg) -- Prime Minister Malcolm Turnbull declared victory in Australia’s election, though more than a week after voting day it remains unclear if his Liberal-National coalition has enough seats to form a majority government.
“This is a great day,” Turnbull, 61, told reporters in Sydney on Sunday, hours after opposition Labor leader Bill Shorten phoned him to concede. “It is vital that this parliament works.”
Either way, the election has raised questions about Turnbull’s leadership, and left him without a strong mandate for much-needed economic and fiscal reforms. S&P Global Ratings lowered the outlook on Australia’s AAA credit rating to negative from stable on Thursday, saying the result potentially dented the government’s prospects for reining in a budget deficit forecast to reach A$37.1 billion ($28.1 billion) in the year through June 2017.
The focus will now turn to the likely make-up of the upper house, where Turnbull will have to negotiate with disparate independents and minor parties to pass savings measures.
“The immediate market implications are minor, with markets more focused on global than local events,” said Paul Bloxham, chief Australia economist at HSBC Holdings Plc in Sydney. “However, the more complex political environment is less conducive to reform, which could weigh on Australia’s medium-term growth prospects.”
