ASIC expands its lawsuit against big Australian banks
ASIC has expanded its lawsuit against ANZ, Westpac, and National Australia Bank to include losses sustained for a longer period of time than previously asserted. The regulator has included various at-risk counterparties in its report, stating that the bank bill swap rate (BBSW), which was allegedly manipulated by the three banks, caused the counterparties to suffer continued losses. Separate proceedings against the banks could be sought as firms attempt to quantify the extent to which they were affected if it is ruled that the BBSW was manipulated. 

The corporate regulator has expanded its legal case against ANZ Banking Group and Westpac Banking Corp, filing an amended statement of claim in the Federal Court on Friday afternoon that points to a broader number of possible victims.

Sources close to the case said the revised wording of one part of the unconscionable conduct claim against both banks better reflects the harm the regulator alleges was caused to customers and counterparties of the banks.

The Australian Securities and Investments Commission is now arguing that losses were sustained by various "at-risk counterparties" who made payments to the banks or other counterparties referencing the bank bill swap rate (BBSW).

ANZ and Westpac will lodge defenses early in August. Nicholas Rider

The regulator now alleges losses were sustained not only on the days that the BBSW was set at an allegedly improper rate, but also on subsequent days, when various payments were set based on the BBSW.

The change brings the formulation of the ANZ and Westpac claims in line with the similar claim filed against National Australia Bank.