(11 November 2005 – Australia) National Australia Bank has confirmed it is seeking compensation exceeding A$539 million from two broking firms in relation to the rogue foreign currency trading saga that precipitated the end of the previous management regime in 2004.One of the brokers is ICAP with the other strongly rumoured to be Cantor Fitzgerald.
NAB said it was seeking compensation for trading losses, additional capital expenses and loss of profit as a result of the disruption to the FX options trading desk – which was reopened in May this year.
The bank said it had a strong case in light of forensic evidence gathered by PricewaterhouseCoopers and the Australian Prudential Regulation Authority.
“While the National would prefer to resolve its claims against those parties by negotiation, it may be necessary for it to bring legal proceedings against them to enforce its rights,” the bank said.