In the case of the ANZ placement, he argued, it’s possible that hedge funds bid aggressively, which might explain the dearth of commentary on the overhang of ANZ stock. It appears that younger investors are keen to play in markets where they believe system is less rigged against them. “Hyperactive hedge funds are given access to all deals and are well looked after.” “They are huge generators of broking commissions because they are big traders, and they reward the delivery of good ideas and stock placements,” he wrote. Hedge funds, he noted, are the biggest source of brokerage for stockbrokers, particularly those owned by investment banks. Inevitably, financial markets have already responded to the ACCC’s cartel case, with investment bankers working out a legal structure that will protect them from taking part in a criminal cartel when capital raisings face a shortfall.

The competition regulator is alleging that powerful investment bankers struck a backroom deal to carefully dispose of a big parcel of shares, worth nearly $800 million, they had been stuck with after a botched capital raising for ANZ Bank in August 2015. It’s far easier politically and internally for the ACCC and CDPP to persist with their case, then to blame the legal system if they are unsuccessful.

Now, confessions of this ilk are extremely difficult for government institutions to make.

Unfortunately, this rational outcome is unlikely because it would require the Australian Competition and Consumer Commission and the Commonwealth Director of Public Prosecutions to admit that the three-year exercise has been an enormous and costly blunder.ĪCCC chairman Rod Sims may have missed the real problem with capital raisings and markets: information flows. In a sensible world, the deeply flawed and long-running criminal cartel case against investment banks Citi Australia and Deutsche Bank and four senior bankers would be dropped.

Case the sims 4