ANZ’s suspected market manipulation will cost the taxpayer up to $80 million in extra borrowing costs, with the corporate regulator’s investigation into the bank’s trading unit narrowing its focus on whether it forced an increase in the interest rate on a $14 billion government bond sale last year., has also raised questions about the internal culture at the bank’s high-octane trading unit, which has been described by current and former employees as “old school” and alcohol-fuelled.
Current and former employees say parts of ANZ’s markets division continue to have an “old school” culture which celebrates heavy drinking and socialising with colleagues. They say there have been multiple allegations levelled internally about cocaine use, for instance, although it is not clear whether any of these claims have been substantiated in subsequent internal probes.
The AOFM last hired ANZ last year on the $14 billion deal, one of the largest transactions in the Australian bond market that year. ANZ had access to confidential information, including when it would take place. “It wasn’t the first time they did it,” said one banking source, speaking on condition of anonymity given the ongoing investigation.
Each basis point move added $1.4 million of additional borrowing costs per annum, and $16.45 million over the near 12-year term of the government’s $14 billion raising. An additional five basis points paid on the debt adds more than $82 million in costs to the taxpayer.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: smh - 🏆 6. / 80 Read more »
Source: brisbanetimes - 🏆 13. / 67 Read more »