Westpac fined over interest rate swap pre-hedging
Court finds against Australian bank for “unconscionable” behaviour, amid calls for broader guidance around the practice
Westpac has been fined by an Australian court for engaging in “unconscionable” pre-hedging practices when it executed an A$12 billion ($9.1 billion) interest rate swap in 2016.
The Federal Court of Australia found today (January 31) that Westpac will have to pay the maximum penalty of A$1.8 million in relation to the conduct, and A$8 million to cover for the Australian Securities and Investments Commission’s legal costs.
The court charged Westpac over its conduct related to a deal with a fund
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