FRUITY LANGUAGE ALLEGEDLY USED BY WESTPAC TRADER REVEALED IN RATE RIGGING CASE

FRUITY LANGUAGE ALLEGEDLY USED BY WESTPAC TRADER REVEALED IN RATE RIGGING CASE
RECORDED telephone conversations have been played in Federal Court which capture a Westpac trader saying he was going to "f... the rate" in relation to his alleged attempts to manipulate the bank bill swap rate (BBSW).

The recordings were presented by the corporate regulator ASIC as it opened its trial against Westpac over alleged misconduct and market manipulation of the BBSW.

"Westpac understood the significance of the BBSW rate set process," counsel for ASIC Philip Crutchfield QC told the court.

The BBSW is a key interest rate benchmark used by a bank to set their own rate for business and personal lending and ASIC alleges this was manipulated so they could charge more for their loans to boost their own profits.

Crutchfield said audio recordings of Westpac's gun trader Colin Roden confirmed there was a strategy to "move the rate".

In one recorded conversation played to the court, Roden tells a colleague "I'm going to f... the rate".

"In this context, it means 'manipulate' and Mr Roden used it quite a number of times," Crutchfield said.

ASIC also tendered transcripts of Roden telling another trader: "I know it was completely wrong, but I thought f... it, I might as well f... it".

The court was also told that recordings and emails also contained references to "push the rate set higher'', "dish it out so it moves higher" and "trashing it", all of which allegedly showed Westpac's true intentions.

Westpac was one of three banks which faced trial on allegations of rate rigging between 2010 and 2012. ANZ and NAB have reached in-principal settlements with ASIC to pay penalties which are believed to be $50 million each.

Westpac responded by saying the phone calls between its traders were taken out of context because "it's the best ASIC can do" to try and prove allegations of rigging the bank bill swap rate.

The landmark case continues.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

In an effort to appease Australian and New Zealand regulator concer...

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

After securing an $830 million contract from Dexus (ASX: DXS), Melb...

Atturra looks to become an IT powerhouse after acquiring MOQ for $15.5 million

Atturra looks to become an IT powerhouse after acquiring MOQ for $15.5 million

Atturra (ASX: ATA) is looking to become one of the nation&rsqu...

Body Fit Training questions latest trademark move from competitor F45

Body Fit Training questions latest trademark move from competitor F45

After claiming victory in a four-year legal stoush with fitness fra...