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<docID>327998</docID>
<postdate>2024-08-30 16:17:02</postdate>
<headline>No cost to taxpayers from bond scandal: ANZ head</headline>
<body><p><img class="size-full wp-image-327999" src="https://citynews.com.au/wp-content/uploads/2024/08/20240220001905182459-original-resized.jpg" alt="" width="900" height="600" /></p>
<caption>Heads of the big four banks are being grilled by a parliamentary hearing in Canberra. (Esther Linder/AAP PHOTOS)</caption>
<p><span class="kicker-line">By <strong>Andrew Brown</strong> in Canberra</span></p>
<p><strong>Taxpayers have not been slugged following misconduct by ANZ employees, the bank's head says.</strong></p>
<p>ANZ chief executive Shayne Elliott has told a parliamentary inquiry into the big four banks there would be consequences across the company for misconduct, including possible pay cuts.</p>
<p>The bank was investigated by the corporate regulator for incorrectly submitting monthly secondary bond turnover data to the federal government in 2023.</p>
<p>Mr Elliott said there had not been any additional cost for taxpayers despite the bond trading scandal.</p>
<p>"There has been speculation that potential misconduct by ANZ in connection with this issuance may have cost taxpayers," he told the committee on Friday.</p>
<p>"From what I have seen, there is no evidence of this.</p>
<p>"I've not seen any evidence, any of the data that supports any misconduct, market manipulation or otherwise, from ANZ."</p>
<p>Mr Elliott said three employees had already left the company and others would suffer consequences from the scandal.</p>
<p>"We have suffered significant reputational damage, and as a result of that, you would expect for us to go back and interrogate how this happened," he said.</p>
<p>"We're right in the middle of doing our annual performance assessments of individuals ... there's no doubt that reputational damage will impact the assessment of some if not many."</p>
<p>The hearings have been held as high interest rates and stubborn inflation impact household budgets.</p>
<p>Mr Elliott said while many were managing despite the economic conditions, trouble loomed.</p>
<p>"People are finding it harder to pay for housing and everyday expenses, and businesses are struggling with higher costs," he said.</p>
<p>"We expect that more people in business will sadly get into difficulty in coming months."</p>
<p>Earlier on Friday, NAB chief executive Andrew Irvine told the committee cost-of-living pressures continued to affect people, with economic growth weaker than in previous years.</p>
<p>However, he expected interest rates to start decreasing in the coming months.</p>
<p>"There are two Australias and a two-speed economy operating at present," he said.</p>
<p>"Customers in certain sectors and certain geographies are doing well and are ambitious to grow.</p>
<p>"People are having to make tough decisions about where they spend their money.</p>
<p>"They are getting by, but it is tough."</p>
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<p>The banking executive noted people in mining and resource sectors and those living in jurisdictions such as WA, Queensland and the Northern Territory were doing well under current conditions.</p>
<p>Those in southeast states and the retail and construction sectors were under more pressure, he said.</p>
<p>Mr Irvine urged the federal government to keep inflation under control, with many mortgage holders struggling with the level of interest rates.</p>
<p>"We must all remember that one in three Australians have a home loan," he said.</p>
<p>"On the other hand, inflation hurts everyone and renters have been particularly hard hit by higher rents and higher living costs."</p>
<p>He also hit out at customers being forced to pay "outdated and outrageous" surcharges for purchases on debit or credit cards.</p>
<p>"It's possible that surcharging was warranted over 20 years ago, but I think it behooves us to ask whether it still serves its purpose," he said.</p>
<p>"It just adds to confusion - it means I don't know what the price of a good is that I'm buying and I don't like it."</p>
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