ANZ CEO Denies Misconduct in Government Bond Issuance Amid Investigations

ANZ, Australia's third-largest retail bank, is under investigation for suspected employee misconduct during a 2023 government bond issuance. CEO Shayne Elliott told a parliamentary inquiry there is no evidence of taxpayer loss. The bank faces regulatory scrutiny and has initiated internal probes, leading to staff terminations and warnings.

ANZ, Australia's third-largest retail bank, is embroiled in an investigation over suspected misconduct by its employees during a 2023 government bond issuance. CEO Shayne Elliott addressed a parliamentary inquiry on Friday, asserting that there was no evidence of taxpayer financial loss due to the alleged misconduct.

The Australian corporate regulator has launched a probe following media reports suggesting that ANZ's bond trading department might have overstated its involvement in the debt issuance. Amid these concerns, the prudential regulator has mandated the bank to increase its cash reserves by 50% to bolster risk management.

Despite the ongoing investigations and significant reputational damage, Elliott maintained that there was no evidence of intentional wrongdoing. The bank has taken disciplinary actions, including the termination of one bond trader and warnings issued to others, in response to complaints of misconduct and violations of the code of conduct.

(With inputs from agencies.)