JPMorgan said to have been granted immunity in relation to ANZ cartel conduct case

Picture: Reuters

Investment bank JPMorgan is understood to have been granted immunity from criminal proceedings surrounding an investigation into alleged cartel conduct relating to a $2.5 billion share placement for its client ANZ Bank in 2015.

The immunity is understood to have been struck after the US-based investment bank offered full disclosure on events surrounding ANZ’s underwritten institutional equity placement in August 2015.

It comes after ANZ was informed by the Commonwealth Director of Public Prosecutions late yesterday that it intended to commence proceedings against the bank for being knowingly concerned in alleged cartel conduct by the joint lead managers of ANZ’s underwritten institutional equity placement in August 2015.

Working on the placement at the time was investment banks Citi, Deutsche Bank and JPMorgan.

However, sources say that JPMorgan will not face charges.

The investment bank declined to comment when contacted by The Australian today.

None of the investment banks have been named in the ANZ or ACCC statements and there is no suggestion of wrongdoing.

However, the ACCC statement states that charges are expected to be laid by the CDPP against ANZ Group Treasurer Rick Moscati and “two other companies” and a number of other individuals.

According to ANZ’s statement, ASIC is investigating whether ANZ’s announcement on August 7, 2015 should have stated the joint lead managers took up approximately 25.5 million shares of the placement. This represented about 0.91 per cent of total shares on issue at that time.

All three banks on the deal underwrote the shortfall and it is understood that the case has been under investigation for about 18 months.

It is understood that the action may relate to how the shortfall was disclosed to the market.

The ACCC said it did not intend to make any further comment until charges are laid.