The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price could be on the move this morning.
This follows the release of an update on a class action brought against it in the United States during 2016.
What was the class action?
Back in 2016, ANZ confirmed that it was among 17 banks and two international brokerage houses that were named in a class action complaint launched in the United States by two US-based investment funds and an individual derivatives trader.
This related to allegations of the rigging of the bank bill swap rate (BBSW) and bank trading in the United States. The BBSW is an independent reference rate that is used for the pricing securities.
In 2017, ANZ acknowledged to ASIC that, during the course of trading on the BBSW market, a small number of traders attempted to engage in unconscionable conduct on ten dates between September 2010 and February 2012. The bank also admitted that it did not have in place adequate policies and systems to monitor trading and communications of its BBSW traders.
What was today’s update?
This morning ANZ announced that it has reached an agreement to settle the class action brought against it in the United States during 2016.
The settlement is without admission of liability. It also remains subject to negotiation and the execution of complete settlement terms, as well as court approval.
The good news for shareholders, and also the ANZ share price, is that while the terms of the settlement remain confidential, the financial impact of the settlement will not be material.
The bank has not commented on the settlement today. However, back in 2017, the company’s Chief Risk Officer at the time, Nigel Williams, commented on the issue.
He said: “We know our customers and the community expect better from us and we apologise for both the attempted unconscionable conduct and our inability to prevent or detect the behaviour.”
ANZ share price performance
The ANZ share price is up over 22% since the start of the year. Investors will no doubt be hoping this strong run can continue now this issue is behind the bank.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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