URGENT UPDATE: ANZ Bank’s chief executive, Nuno Matos, has issued a stark apology for significant misconduct, including a disastrous bond sale that resulted in a staggering $240 million penalty. Speaking during a parliamentary inquiry on October 25, 2023, Matos cited a pervasive “good news culture” and a lack of self-awareness as key factors behind the bank’s failings.
The Australian Securities and Investments Commission (ASIC) levied the penalty against ANZ for multiple breaches, including misreporting bond trading data, which potentially cost the Australian government $26 million. Matos acknowledged the bank fell short of expected standards, stating, “The bank fell short of what is expected of us, and for that, I offer an unreserved apology.”
The inquiry revealed that ANZ had also failed to address customer hardship notices, issued false statements regarding savings interest rates, and neglected to refund fees charged to deceased customers. While Matos claimed the government incurred no losses from the bond sale, the fine is the highest in ASIC’s history, prompting committee chair Ed Husic to assert, “It should have been higher.”
Matos, who took the helm in May, emphasized the urgent need for cultural reform within the bank to prevent further issues. “We need to be more decisive and make decisions today, not postpone them,” he urged, highlighting the importance of accountability and timely execution.
In addition to addressing misconduct, ANZ announced plans to cut its workforce by 8% across its institutional and retail divisions by 2025. The inquiry also featured discussions surrounding surcharges on card payments and the government’s 5% deposit home loan scheme, with the Reserve Bank reviewing the payment system to potentially eliminate surcharges on popular card brands, which could save consumers over $1 billion annually.
The fallout from ANZ’s actions continues to draw scrutiny, with National Australia Bank CEO Andrew Irvine set to testify in the coming days. As this story develops, the implications for ANZ, its customers, and the broader banking sector remain critical. Stay tuned for updates on this urgent situation as it unfolds.
