An Australian regulatory agency has criticized Westpac for allegedly infiltrating and breaching a license by borrowing an A $ 12bn ($ 9.3bn) loan linked to the repayment of a major power distributor in the country.
The lawsuit, filed by the Australian Security and Investment Commission on Wednesday, is expected to be a global one. he controls them to the second largest bank in the country and goods.
The allegations come as Westpac is trying to make a name for itself following false allegations and a public inquiry instability in economic sectors.
In his remarks, Asic said the internal trade statements related to Westpac’s contribution to the largest interest rate in Australian history in lieu of pensions were purchased by Ausgrid, a power company, in the New South Wales government in 2016.
Asic said a number of Westpac businessmen and executives were aware that the bank had been appointed by the pension fund to carry out this major project, which was aimed at protecting interest-related interest rates purchased on demand.
More than two hours on October 20 2016, the day the Ausgrid deal was announced, Westpac traded hundreds of prices that raised the prices its pension customers were required to pay interest, the guard said in a lawsuit filed in a court in Australia.
The pension fund consortium, which included Australian Super and IFM Investors with more than A $ 300bn in control, could see the prices plummeted on the morning of the loan but were unaware that it was due to a sale by Westpac, Asic is accused.
Westpac said this took the cases “seriously”. Shares gained 0.2% on Wednesday.
Investigators say the case could prompt Westpac to try to restore its reputation, which it was contamination last year when he paid a $ 1.3bn fine for false allegations that ruined Brian Hartzer, a former high-ranking official, at his job.
Elizabeth Sheedy, an economics professor at Macquarie University, said the internal business crisis was strange because it was against the organization, not the people.
“In theory, banking ideas and strategies should have prevented anything like this from happening, but we already know that Westpac’s risk management strategies were not original at the time,” he said.
Sheedy said the case could be relevant to Asic, who last year lost a suit against Westpac over normal lending laws.
Nathan Zaia, an investigator on the Morningstar research team, said the allegations show a negative side to Westpac following a government-investigated investigation two years ago on financial irregularities.
But he said the huge amount of money the bank spends on risk management and corporate culture since 2016 could help prevent the practice in the future.