The Commonwealth Director of Public Prosecutions is charging Australia and New Zealand Banking Group Ltd [ASX:ANZ] with criminal charges over an illegal share placement which occurred in 2015.
Today, ANZ shares fell by 2.15%, putting the massive bank through further struggles after the Hayne Royal Commission investigations.
The bank believes they were acting within the law during the placement
ANZ came out saying that it was in their best judgement to balance retail shareholders and managing the raising capital in a fair way.
Despite ANZ apparently being unaware, the watchdog confirmed the bank is likely to be faced with criminal charges alongside two other companies and other individuals involved.
The Sydney Morning Heraldreported that ACCC chairman Rod Sims stated:
‘The charges will involve alleged cartel arrangements relating to trading in ANZ shares following an ANZ institutional share placement in August 2015, it will be alleged that ANZ and the individuals were knowingly concerned in some or all of the conduct.’
ANZ have not provided much comment on the allegations, apart from the bank believing they were acting under legal grounds while breaching conduct at the time.
The main intentions behind the banks decision to follow through with this deal, was to find short cuts in its business operations.
ACCC also came out saying they will not make any more further comments until charges are laid.
The $2.5 billion placement had been completely underwritten in August 2015 by Citigroup Global Markets Australia and JP Morgan Australia, as stated by the ANZ.
It’s unknown what narrative the bank is trying to create to counter these allegations.
They are more or less creating an innocent platform for themselves.
Despite what may happen next, shares of ANZ may struggle to bounce back after this has all concluded.
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