Westpac sued for alleged insider trading
Westpac is being sued for alleged insider trading, amid
claims the bank unfairly profited from a $12 billion interest rate swap deal.
Financial regulator the Australian Securities and
Investments Commission on Wednesday said it was taking the bank to the Federal
Court over the deal with an AustralianSuper consortium.
ASIC alleged that on October 20, 2016, Westpac traders knew
the bank would be chosen by the consortium for the swap.
The consortium had, about 90 minutes earlier, agreed to buy
electricity provider Ausgrid from the NSW government.
ASIC alleged Westpac traders used the inside information to
buy and sell interest rate derivative products on the market to better position
the bank for the swap.
Interest rate swaps allow two groups to exchange interest
rate payments, often fixed for variable, over a set period.
Westpac said it took the allegations seriously and was
considering its position.
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