ANZ traders exited over intoxication, profane language: Shayne Elliott

Three ANZ traders left the bank, and one was given a formal warning, after an internal investigation found they used profane language in the Sydney dealing room and returned to the office drunk after consuming an “unreasonable” amount of wine at lunch during work hours.

ANZ’s culture is under the spotlight amid heightened concerns about its corporate governance stemming from the bank’s bonds trading scandal, in which traders are alleged to have manipulated the benchmark 10-year futures rate when ANZ managed a $14 billion government bond sale last year.

ANZ chief executive Shayne Elliott at a parliamentary inquiry on Friday. Credit: Alex Ellinghausen

Chief executive Shayne Elliott on Friday fronted a parliamentary inquiry where he was grilled about the saga, as well as the bank’s internal investigation into workplace culture at the Sydney dealers’ room.

“The substantiated issues with conduct for individuals, not diminishing, it’s for profanity in the dealing room and coming back from lunch having consumed wine, not to the extent that they were incapable of doing their job, but nonetheless they were intoxicated and therefore they shouldn’t have been,” Elliott said.

“What we’re going through at the moment is a structures review process to look at management. I can assure you, there will be consequence for managers at multiple layers through the organisation for that conduct and for allowing it to happen in the first place.”

Elliot said one trader was sacked, two left by “mutual agreement” and another was given a formal warning. He revealed several complaints had been made to management about those traders’ conduct, but said the investigation “probably took too long”.

“In all matters whether it is data, the trading issue or misconduct, we are having a look to say were issues dealt with quickly enough?” Elliott said.

“Clearly the data issue wasn’t. Arguably even the conduct issue could have been faster or dealt with more quickly, so we need to talk about how quickly we are identifying issues.

“We need to look at how fast we escalate those matters and thirdly, in a timely manner, how we reach decisions around consequences.”

ANZ is under significant pressure after the Australian Securities and Investments Commission confirmed it was investigating the bank, and the Australian Prudential Regulation Authority last week said it had heightened concerns about ANZ’s corporate governance and demanded it hold an extra $250 million in capital until it cleans up its cultural problems.

APRA chair John Lonsdale this week reportedly said he expected ANZ’s board to consider reducing bonuses for senior executives in the wake of its bonds trading scandal.

Elliot on Friday conceded he was likely to face “consequences” on his remuneration over the “reputational harm” around the allegations.

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