Commonwealth Bank has continued its “clearing of the decks” by agreeing with ASIC to settle its BBSW manipulation case. In the last year, Commonwealth has been accused of facilitating money laundering, or at least not doing enough to prevent it. It has also been dealing with problems in its financial planning and life insurance businesses. As a result, APRA forced it to set aside an additional $1 billion in capital.
Now, the bank “will acknowledge that, in the course of trading on the BBSW market in Australia on five occasions between February and June 2012, CBA attempted to engage in unconscionable conduct in breach of the ASIC Act.” Prior to a change in 2013, BBSW was set by taking an average of submissions from a panel of banks, including Commonwealth Bank.
