Criminal cartel charges set to be laid against ANZ, Deutsche Bank, Citigroup Global Markets Australia
The criminal cartel charges are expected to be laid by the Commonwealth Director of Public Prosecutions.
Some major banks are facing charges in Australia, it has become clear this morning. Following an announcement made by ANZ to the ASX this morning about anticipated criminal cartel charges, the Australian Competition & Consumer Commission (ACCC) has confirmed that criminal cartel charges are expected to be laid by the Commonwealth Director of Public Prosecutions (CDPP) against ANZ, ANZ Group Treasurer Rick Moscati, Deutsche Bank, Citigroup Global Markets Australia and a number of other individuals. These charges will be laid following an investigation by the ACCC.
“The charges will involve alleged cartel arrangements relating to trading in ANZ shares following an ANZ institutional share placement in August 2015,” ACCC Chairman Rod Sims said. “It will be alleged that ANZ and the individuals were knowingly concerned in some or all of the conduct.”
The investigators allege cartel conduct by the joint lead managers of ANZ’s underwritten institutional equity placement of approximately 80.8 million shares in August 2015. The proceedings relate to an arrangement allegedly made between the joint lead managers in relation to the supply of ANZ shares.
In its statement, ANZ said it was also co-operating with ASIC’s investigation into the matter. ASIC is investigating whether ANZ’s announcement date August 7, 2015, should have stated that the joint lead managers took up approximately 25.5 million shares of the placement. This represented about 0.91% of total shares on issue at that time.
Further to the announcement about the criminal cartel charges expected to be laid by the CDPP against ANZ and its Group Treasurer Rick Moscati, the ACCC confirmed that Deutsche Bank AG and Citigroup Global Markets Australia are the two other companies against which charges are expected to be laid, along with a number of individuals. The expected charges follow an extensive ACCC criminal cartel investigation.
The ACCC refused to make any further comment until charges are laid.
