BBSW rate setting ‘like NRL wild bets’

Westpac director compared the alleged manipulation of the bank bill swap rate to bets placed on the 2010 NRL grand final.

Daniel Park agreed with his colleague that the BBSW market was akin to punters trying to score a better deal for large bets by splitting it between several bookies.

Westpac executive director of institutional banking Satruhan “Zac” Sharma compared the alleged manipulation of the bank bill swap rate to wild bets placed on the 2010 NRL grand final.

In previously unreleased transcripts of private phone calls between traders in the bank’s markets department — used by the corporate watchdog as part of an investigation into the alleged rigging of the key interest rate benchmark — Westpac institutional managing director Daniel “Bench” Park agreed with his colleague that the BBSW market was akin to punters trying to score a better deal for large bets by splitting it between several bookies.

The transcripts of telephone recordings, released to The Australian by the Federal Court, shed new light on the colourful trading floor environment at Westpac. While ANZ Bank and National Australia Bank both struck $50 million deals to settle the rate rigging allegations, Westpac has chosen to fight the Australian Securities & Investments Commission in Federal Court. The transcripts were released on Tuesday evening following an application by The Australian.

In late September 2010, Westpac employee Bryan Duignan said his boss, Mr Park, would have to be a “happy man” with the St George Illawarra Dragons playing the NRL grand final, which took place just days later at Sydney’s ANZ stadium.

Mr Park told Mr Duignan that he was “going out to the game as well” and would be watching from the Deutsche Bank corporate box on the halfway line, to which Mr Sharma said: “It’s a hard life for some, isn’t it? . US Open, State of Origin, geeze”.

“Did you see some punter’s just put $1 million bucks on the Roosters?” Mr Park told his colleagues.

“Get out,” Mr Sharma said.

“$2.60,” said Mr Park.

“Jesus, that’s a — that’s a good lash,” said Mr Sharma, “…..he should have just rung up, like 5

people and got, like, 200 grand on it at $2.60.”

“He did,” said Mr Park, “he tried to…….it’s out in the market so it’s so small, it’s even smaller than the bloody (BBSW) market …. Everyone knew what was going on, and -”

Mr Sharma cut in: “It was like a 3-month BBSW rate set”

“Yeah, exactly,” said Mr Park.

The Dragons, which are sponsored by Westpac subsidiary St George, ended up drubbing the Sydney Roosters, with a final score of 32 to 8.

ASIC, which has accused Westpac of rigging the rate on 16 days between 2010 and 2012, is seeking to win three from three cases against the largest Australian banks.

Justice Jonathan Beach is expected to hand down his decision next year.