Banks ordered to fix their story on BBSW
Three banks fending off ASIC allegations of bank bill swap rate market manipulation must co-operate with their antagonist to agree on a statement of facts.Justice Jonathan Beach yesterday ordered defendants ANZ, National Australia Bank and Westpac to work together, and with ASIC, on an agreed statement of facts including the mechanics of the BBSW market, a ruling made in the face of the banks' barristers' objections that the process may frustrate the case. According to a Fairfax Media report on the hearing at the Federal Court in Melbourne, Justice Beach deferred a related decision on whether to amalgamate the three civil actions into a single matter for a hearing next year.Beach said that, for now, he will keep an "open mind" about whether to hear the bank cases separately or together, but wanted them to make a serious effort to find as much common ground as possible with ASIC."I'm satisfied that the procedure that ASIC contends in terms of statements of agreed facts is a sensible and proportionate process to follow at this stage ... I see no downside to that process, there is much more upside than downside and it won't delay the filing of expert evidence, I think it's worth trying", the judge observed. Alan Archibald, for ANZ, argued "the problem with [ASIC's proposal] is it ends up being too ambitious, it fails to sharpen issues, it yields endless controversy about expressions of factual propositions. It is simpler, easier and more efficient for ASIC to put on their evidence."NAB's advocate, Neil Young, echoed these sentiments: "The agreed fact process is premature and undesirable at this stage. "It will inevitably lead to delay and it is likely to prejudice if not guarantee that there is be no hearing of this matter in August 2017, certainly not one in which we are able to participate," reported Fairfax Media.Justice Beach pointed out that NAB had yet to file its own defence in the case, which may not be heard for another 12 months. Meanwhile the Big Four Australian banks, plus Macquarie Bank, alongside a dozen major investment banks, will be defending a class action in the US over rate fixing.The US case has taken aim at the administrative efforts of AFMA, as one central theme.[LINK: http://www.smh.com.au/business/banking-and-finance/banks-scolded-in-bbsw-stoush-20160822-gqy16g.html]