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CBA denies new BBSW manipulation claims

By Jessica Yun
2 minute read

The Commonwealth Bank of Australia (CBA) has denied fresh claims by the Australian Securities and Investments Commission (ASIC) that the bank manipulated the bank bill swap rate (BBSW).

CBA has acknowledged in a statement that it was “reviewing” the new Statement of Claim lodged by ASIC yesterday, alleging CBA engaged in three further instances of BBSW manipulation.

“The Commonwealth Bank disputes the allegations made by ASIC as we do not believe our employees have engaged in unlawful conduct, nor have they done anything that would have adversely impacted the efficiency and integrity of financial markets as alleged, or at all,” the statement read.

“The Commonwealth Bank has co-operated fully with ASIC’s investigation and we will look to constructively engage with ASIC in order to resolve this matter.

“As the matter is before the court, it would not be appropriate to comment further at this time,” the statement said.

ASIC has now taken taken all big four banks to court over BBSW manipulation, but ANZ and NAB have settled their cases with the corporate regulator for approximately $50 million each, leaving Westpac still contesting the matter in court.

ASIC commenced civil proceedings against CBA on 30 January this year, alleging the bank engaged in “unconscionable conduct and market manipulation” between January 2012 and October 2012.

But CBA denied the claims in a statement released later that day, declaring it “disputes the allegations made by ASIC”.