SMH – July 2016 ASIC statement of claim against NAB shows deep...

SMH – July 2016
ASIC statement of claim against NAB shows deep concern inside bank over rate rig- Sarah Danckert and Clancy Yeates

A National Australian Bank trader who allegedly rigged the bank bill swap rate - to the detriment of his colleagues - has found his own co-worker saying he "f--ked up big time".
Paul Howarth, the head of short-term interest rate trading at NAB, is alleged to have intentionally withheld 90-day bank bill swap rates from his colleague Terry Maxted so Mr Howarth could fix the rate.
Mr Maxted was trying to trade the bills to his client, wealth management powerhouse AMP from both Mr Howarth and another colleague David Page who at the time did not have the bills
ASIC alleges telephone, email and chat room transcripts lay bare the trade where Mr Howarth delayed the release of the bills to Mr Maxted until after the rate had been set.
"They're abusing everybody. They're abusing the balance sheet, they're abusing the market, they're abusing customers," Mr Page told Mr Maxted on September 9 after discovering Mr Maxted's client had been allegedly affected by Mr Howarth's actions.
Speaking after he received the bills from Mr Howarth, Mr Maxted told Mr Page: Paul's just redeemed himself a bit. He come over… They've got so much bloody stock, which he could have done them," Mr Page said.
To which Mr Page replies: "Well, he (Mr Howarth) hasn't redeemed himself. He's f*ing failed at the rate set and he's coming crawling back I wouldn't call it redeeming himself."
ASIC has filed its statement of claim against National Australia Bank over its alleged rigging of the bank bill swap rate. Photo: Jim Rice
Mr Page adds: "He's f--ked up big time ... I think it's been disgraceful today – honestly disgraceful."
NAB chief risk officer David Gall said in a statement that "doing the right thing by our customers" was a core value, and the bank did not condone "inappropriate language".
NAB has gone further than rivals in winding back the role of sales targets for staff. Photo: Rob Homer
"ASIC's detailed statement of claim refers to a number of emails, instant chat messages and telephone conversations involving our employees. NAB retains this information as part of our business processes," he said.
"As we have said, we do not agree with ASIC's claims, which means they will now be settled by the Federal Court process." The bank bill swap rate, or "BBSW" in finance speak, is the primary interest rate benchmark used in Australian financial markets.
He's f--ked up big time ... I think it's been disgraceful today – honestly disgraceful. David Page
It is used by banks to set the rates for business and commercial loans and is essential to a fair and open market.
ASIC has so far launched legal action against NAB, Westpac and ANZ Bank, and it is also investigating traders from Commonwealth Bank, but has not yet filed a lawsuit against the lender.
At a directions hearing in the Federal Court last month, Justice Jonathan Beach said he wanted to hear all three cases together and set a provisional trial date for August next year.
However, ASIC is pushing to have its case against ANZ heard first, which is believed to be the strongest.
The cases come as ASIC is pressuring the country's big banks to improve what it sees as big cultural shortcomings in the finance sector, after a string of scandals spanning financial advice, insurance and wealth.