Aussie banking inquiry to lay criminal cartel charges against banks

SYDNEY, June 1 (Xinhua) -- Australia's third largest bank ANZ, along with other "individuals," is set to face charges from the commonwealth director of public prosecutions for alleged involvement in a criminal cartel arrangement.

The Australian Competition and Consumer Commission (ACCC) said in a statement on Friday that the matter stems from a 2.5-billion-Australian dollar (1.89 billion U.S. dollar) share placement in August of 2015, when the Australian Prudential Regulatory Authority required the nation's biggest lenders to strengthen their exposure by raising capital.

On offer to institutional investors were 80.8 million ANZ shares at a discounted rate of 30.95 Australian dollars (23.34 U.S. dollars) per share.

With three global investment banks involved in the deal, it has been confirmed by the ACCC that Citigroup and Deutsche Bank will also face charges in relation to the matter, however it is still unclear whether JP Morgan will have any legal case to answer.

"The charges will involve alleged cartel arrangements relating to trading in ANZ shares," ACCC Chairman Rod Sims said.

"It will be alleged that ANZ and the individuals were knowingly concerned in some or all of the conduct."

Flagged by the Australian Securities and Investments Commission (ASIC), the investigation into the share placement will focus on whether ANZ should have notified the market that joint lead managers would take around 25.5 million unsold shares with a total value of 790 million Australian dollars (596 million U.S. dollars).

All three banking firms have denied the allegations. Enditem