JPMorgan Chase began internal discussions that would lead to immunity from prosecution over a troubled Australian capital raising two years before two rivals were charged with criminal cartel behavior, a court heard on Thursday, December 5.
A former JPMorgan banker gave the timeline as the first witness to testify in a legal battle that is being closely watched by investment bankers around the world because it may change the way they are permitted to conduct capital raising.
JPMorgan, Citigroup, and Deutsche Bank worked on a AU$2.5 billion (US$1.7 billion) stock issue for Australia and New Zealand Banking in August 2015.
All but JPMorgan were charged last year with withholding details of the sale process to investors. Prosecutors accuse the three banks of forming a cartel to restrict the supply of ANZ shares and maintain their price after the banks were unable to sell them all to regular investors, court documents showed.
JPMorgan was given immunity on the condition that it cooperate with authorities, the court previously heard.
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