From Fairfax:
Traders at Westpac openly discussed how “f—— with the rate set” could hurt some customers and ultimately and “deservedly” harm the bank’s reputation if an inquiry into the bank bill market was ever conducted.
The revelations are presented in new court documents that provide fresh detail on alleged manipulation by the bank of a key benchmark interest rate, the bank bill swap rate (BBSW)…ANZ is facing a similar action.
…Among the most damning are transcripts of a conversation on June 9, 2010 between Westpac managing director Group Treasury Colin Roden, a “Mr Arkins” and a person identified as “Matt” in which “fear” and “concerns” about the impact of their actions are clearly discussed.
“Some end users who you don’t know, you know corporates and people who don’t know who get stiffed by people,” the transcript said without identifying which of the three men on the call made the comments.
“And then in 2 years time there’s some enquiry that you have been f—ing with the rate set that’s cost them all 10 basis points and, you know what, leave me alone, its got nothing to do with me, right. That’s my biggest fear and that’s what I will express to them…,” the transcript said.
…Mr Roden referred to NAB as “the scum” “f—ing NAB” and “deadshits” in a conversation with colleague Sophie Johnson on April 6, 2010, in which he described how he pushed the one month bank bill rate lower after buying paper from UBS that Westpac had issued directly to NAB, who then sold it without Westpac’s knowledge.
The transcript was presented by ASIC to show how, when Westpac’s treasury had a $14 billion ‘short’ exposure to the one month bank bill rate, it sought to push it lower. He bought $500 million from UBS, $250 million from Bank of Scotland, $350 million from JPMorgan and $300 million from Goldman Sachs.
“I hate those f—ers as well,” Roden said.
Royal Commission now.
