Grounds to sue Austrac for Westpac loss?

I don't think AUSTRAC is accountable to investors or the ASX in that way. They were established to combat international financial crimes, including terrorism, and that appears to what they are doing. It would be exactly the same situation if the Federal Police raided a company and arrested the board and CEO. They can't be expected to flag their tactics beforehand. Maybe if the Westpac board knew this was coming they would have had some duty to disclose.

Personally, I think it is high time a few chairs and CEOs were criminally prosecuted for their failings.

 

I think it's a case as with most things where law enforcement overrides other considerations.

 

Another issue entirely, but if Boeing are going to bring back the 737 Max, then the board and engineering staff should go on a world tour to prove it's safe.

The principle being that the buck stops at the top.

 

The problem being, of course, that it doesn't. Not one bank senior exec or board member has even been charged over the outcomes of the Royal Commission. Ken Henry - probably the most honourable and least culpable of all of them - did fall on his sword but never faced a court. Similarly, I'm fairly confident that no senior person will be held responsible for the horrors coming out of the Aged Care or Disabilities RCs. A few low level, lowly paid, staff may face court for their individual actions but the systems that lead to it will be put in the "sh1t happens" basket.

The same happens in Government of course. Mismanagement and policy directives that actually lead directly to death and impoverishment (Robodebt, offshore gulags, dismissing the risks of putting pink batts in roofs, cutting fire management services, ....) are sheeted home to the lowest level possible and the real culprits go on to careers as highly paid consultants.

Look at how that champion of free markets and personal freedoms , Tim Wilson, reacted to the current Westpac case:

Yep. We are talking about facilitating the financing of terrorism and child trafficking, so we'll write them a LETTER!

But don't even think about protesting against government policy or the mistreatment of animals or not paying a parking fine on time while being black, or you'll go straight to jail.

How did we get here?

 

When it comes to high income organisations all the pollies are hoping for jobs on the Boards after they retire. They can't be upsetting the applecart otherwise the chaps won't trust them on the Board.

 

ZZZ ...

this issue was already disclosed in the Westpac 2019 accounts, well prior to the cap raise.

End of case, end of ... well this hot air.
Whilst WBC and a few hit around the $30- mark, the underlying issues were actually getting worse ... need for capital and this and a few other likely fines.

Now the media ... or the share price reflects where things are, with a risk premium, its the end of the world for some.

Even if WBC cut dividend to $1.50 ... and they already did cut, knowing the likely scope of this fin of say 800 mio ... its a 91 billion company that makes 6 billion a year globally. Yes ... its lows yesterday were 20% off the highs of late, but they were, to be blunt idiotic.

At even $1.50 ... that's a 6% yield fully franked ... so 8% of so equiv in an interest rate environment where the cash rate is 0.75% and likely to fall to 0.5%.

At $22- and a $1.50 dividend its 6.82% yield and with franking credits around 9% grossed up yield.

So between $25; and maybe ... $22- its some value I susspect

 

In a few months when the dust has settled, CEO replaced, fines issued and paid, it will be business as usual, and the share price bounce. It will be bigger and better than ever with a new CEO at the helm and confidence restored. Takes time, hang in there.

 

This article gives good insight into the long term issues Westpac face , Atleast helped me understand better https://youth-investment-group.com/...-heres-why-you-should-not-buy-westpac-shares/