Westpac Banking Corporation has denied allegations in a USA class action relating to trading in bank bill swap rates (BBSW), the bank said in a disclosure.
Advertisement
ANZ, Westpac and National Australia Bank are among the targets of a class action in the United States related to trading in the bank bill swap rate. The two lenders, along with Westpac Banking Corp., already face civil court action in Australia that has been filed by the securities regulator over the setting of the key rate, also known as BBSW.
ANZ said it would be “vigorously” defending itself against the USA claim. Meanwhile, Westpac noted, while it had not formally been served with any proceedings, it denied the allegations and planned on defending itself against any claim that should materialise. Commonwealth Bank of Australia, the nation’s second largest lender, was not immediately available to comment.
The BBSW is the primary interest rate benchmark used in Australian financial markets to price home loans, credit cards and other financial products.
Advertisement
“When one ANZ trader sarcastically commented “lucky the rate sets are all legit and there is no manipulation within the Australian financial system”, his colleague replied “ahahah”, according to the USA filing.
