ANZ, Deutsche Bank, Citigroup face criminal cartel charges

The Commonwealth Director of Public Prosecutions is expected to bring the charges against ANZ group, its treasurer, Citigroup and Deutsche Bank as well as other individuals, according to the Australian Competition and Consumer Commission (ACCC).

ANZ offered AUD 80.8 million worth of shares to Deutsche Bank, Citigroup in addition to JP Morgan, which was not named by ACCC, at a discounted rate of AUD 30.95 per share, while the deal was fully underwritten by the three banking giants.

The accusations are related to alleged cartel arrangements between joint lead managers regarding the sale of AUD 2.5 billion ($1.89 billion) worth of ANZ shares.

“It will be alleged that ANZ and the individuals were knowingly concerned in some or all of the conduct,” ACCC said in a statement.

In the meantime, the Australian Securities and Investments Commission (ASIC) investigates whether ANZ should have disclosed that the joint lead managers took up approximately AUD 25.5 million shares of the placement, which accounted for 0.91% of the total share.

The capital raising in 2015 came on the back of regulators demanded Australia’s “big four banks” to inject billions into their mortgage books and boost overall capital in the banking sector to “unquestionably” strong levels.

"We believe ANZ acted in accordance with the law in relation to the placement and on that basis the bank intends to defend both the company and our employee," ANZ chief risk officer Kevin Corbally said in a statement to Australian Securities Exchange (ASX).