ANZ Banking Corporation Ltd
(ASX:ANZ) is facing legal action over its role in the collapse of stock lender Primebroker Securities.
The Sydney Morning Herald reports that the bank has two lawsuits against it, totalling $285 million, concerning the final months of Primebroker which went into receivership in July 2008.
Primebroker’s liquidator, BDO, is expected to lodge a statement of claim with the Federal Court this week requesting the return of $86.2 million Primebroker repaid to ANZ in the six months before its collapse.
A second $200 million claim funded by Chimaera Capital, which controlled Primebroker, and a number of a former clients is also expected to start soon.
They claim ANZ failed to clear share trades on behalf of Primebroker in three working days, as required by the Australian Securities Exchange.
ANZ says it is aware of the accusations being made and will defend any action taken against it.
The legal stoush could lead to a number of Melbourne business identities taking the witness stand, including ANZ CEO Mike Smith.
For the 12 months to September 30, 2009, ANZ Bank posted a profit of $2.943 billion.
