JPMorgan banker quizzed in cartel case

Mr Galvin testified that he met with both JPMorgan’s lawyer and his own lawyers throughout March 2016, and then met with the bank’s legal team at Gilbert + Tobin, who originally helped the bank through the immunity process.

This was before he received communication about immunity offers in June 2016.

This could add fuel to an argument previously put forward by the defendants that the promise of immunity compromised the credibility of the executives’ witness statements.

Furthermore, Mr Galvin confirmed that he understood he had received derivative immunity, meaning his protections stemmed from the primary immunity granted to JPMorgan.

The criminal cartel charges laid against Citi and Deutsche Bank and six of their executives relate to a 2015 share issue by ANZ in which it raised $2.5 billion from institutional investors.

A shortfall arose during the capital raising, with about 25.5 million shares unsold. Citi, Deutsche and JPMorgan, which were underwriting the placement, later took up these shares to sell.

The ACCC alleges the banks arrived at “an arrangement or understanding” in a series of phone calls about how these leftover shares would be sold, in order to restrict supply or maintain ANZ’s share price.

The landmark case could have big implications for capital markets as it challenges the legality of some underwriting, trading and share placement practices by banks and brokers.

The JPMorgan bankers are appearing after a lengthly legal battle over whether they could be cross-examined before the case is refered to the Federal Court for trial by jury.

The ACCC cut a deal with defence lawyers that the JPMorgan witnesses could be examined.

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