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TEHRAN, June 05- Australia’s anti-cartel laws have come to global attention after the country’s competition watchdog said it would lodge criminal charges for alleged cartel behavior against two global investment banks, in a move one expert called “almost unique”.
TEHRAN, Young Journalists Club (YJC) -Australia’s anti-cartel laws have come to global attention after the country’s competition watchdog said it would lodge criminal charges for alleged cartel behavior against two global investment banks, in a move one expert called “almost unique”.
Deutsche Bank AG and Citigroup Inc denied wrongdoing, with the latter saying the regulator was effectively criminalizing practices long seen as the norm in the financial industry.
Banking expert Andrew Grant at the University of Sydney Business School said the move was “almost unique” in Australian corporate history and indicated prosecutors had a high level of confidence in their case.
The Australian Shareholders’ Association said the pending charges could trigger reform to ensure greater banking transparency.
WHAT HAPPENED?
The Australian Competition and Consumer Commission (ACCC) on Friday said federal prosecutors would charge Australia and New Zealand Banking Group Ltd (ANZ), its treasurer, Rick Moscati, Deutsche and Citi.
The Commission said the charges involve alleged cartel arrangements related to trading ANZ stock after an ANZ institutional share placement underwritten by Deutsche and Citi in August 2015.
ANZ, Deutsche and Citi said they expect to be charged and denied wrongdoing. JPMorgan Chase & Co, which also acted as underwriter, has not been charged and declined to comment.
WAS THE ANNOUNCEMENT A SURPRISE?
The ACCC has been working toward a significant criminal prosecution over cartel behavior for a number of years. In February, Chairman Rod Sims in a speech said the Commission had five referrals with Australian prosecutors and a portfolio of investigations that were at an advanced stage.
The surprise was the ACCC had been looking at investment banks. Most other Commission investigations into cartels have looked at trade in goods. The first cartel prosecution in modern Australian history was in 2017 involving collusion among Japanese vehicle shippers from 2009 through 2012..
The only other cartel prosecution in Australia took place in 1908 and involved coal miners.
ARE AUSTRALIA’S CARTEL LAWS SO DIFFERENT FROM ELSEWHERE?
Source: Reuters
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