I work on deals like these in a professional capacity so thought...

I work on deals like these in a professional capacity so thought I'd share my expertise with the community. Take my advice or not, I couldn't care less. But know that you are simply wrong if you think BOQ won't wear any eventual financial penalties.

D&O insurance covers the directors of ME Bank at the time of the transgression. The announcement states that ME is being charged, not its directors. ASIC and DPP may choose to later prosecute those directors subject to the nature of the transgressions in which case D&O policies may be enlivened - though insurers don't ordinarily insure against loss resulting from criminality. As I stated in my first post, it will be the owner of ME at the time of judgment which pays any financial penalties. Subject to the releases given during the acquisition, the owner of ME may or may not have a civil right to sue the former directors for that loss.

As to @uraniumu308, one would assume the market hasn't punished BOQ because the risk was disclosed during the due diligence process and yet BOQ proceeded with the acquisition, signalling that the alpha outweighed the downside risk. Rocket science.