International News

SYDNEY, (APP/AFP): Westpac Bank has vowed to “vigorously
defend” itself against allegations of manipulating the interbank lending rate after Australia’s corporate regulator launched legal action against the financial giant, the second case in a lengthy investigation.
The Australian Securities and Investments Commission (ASIC) said it
had commenced legal action against Westpac in the Federal Court of Australia on Tuesday for manipulating a key market interest rate, which is used as a benchmark in domestic financial markets, from April 6, 2010 to June 6, 2012.
“ASIC contends that, on 16 occasions… Westpac traded Prime Bank
Bills in the Bank Bill Market with the intention and likely effect of influencing the setting of the bank bill swap reference rate (BBSW) to its advantage and to the disadvantage of parties to certain products who had an opposite exposure to the BBSW,” court documents said.
“We’ve got so much money on it, we just had to do it, right.”
Westpac’s group chief financial officer Peter King said the bank “will be vigorously defending ASIC’s allegations in court”.
“We reject the allegations made by ASIC and do not believe Westpac, or any employee, has acted unlawfully in relation to the instances detailed by ASIC,” he added in a statement late Tuesday.