The Australia and New Zealand Banking Group (ASX: ANZ) share price is currently down 1.8% after it announced the Commonwealth Director of Public Prosecutions (CDPP) intends to commence proceedings against the bank.
The CDPP alleges ANZ was knowingly concerned in alleged in cartel conduct by the joint lead managers of ANZ’s underwritten Institutional Equity Placement of approximately 80.8 million shares in August 2015.
ANZ said the proceedings relate to an “understanding” between the lead managers which were offering new shares at the time. The lead managers took up 25.5 million of the issued shares — or 0.91%. In addition to CDPP, ASIC, the regulator for financial services, is investigating the issuance of the shares.
ANZ Bank’s Treasurer, Rick Moscati, will also face the CDPP, but the bank says it will defend both cases.
“We believe ANZ acted in accordance with the law in relation to the placement and on that basis the bank intends to defend both the company and our employee,” Kevin Corbally, ANZ’s Chief Risk Officer said.
These claims against ANZ follow the recent scrutiny put on all banks and financial services firms as part of the Royal Commission.
What would Warren Buffett do?
If you like investing and want to learn more you should know it’s free to join The Rask Group’s Investor Club Newsletter and receive a free Australian investing ebook! Join today and download the free ebook, “What Buffett’s Investing Checklist Can Teach Aussie Investors“. Then, get ready to laugh and learn.
Click here to join The Rask Group’s Investor Club Newsletter Today
