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Accused Aussie Rate-Rigger Walked Colleagues Through Pros/Cons Of Rigging Rate

Conclusion: "F*ck it."
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Con: jail time. Pro: Money.

In a February 2009 email from Westpac’s Colin Roden — now managing director of group treasury — and the bank’s then group treasurer Curtis Zuber, Mr Roden discussed the introduction of a new BBSW [bank bill swap rate] futures product proposed by the ASX.

“We are in a very competitive position to arrange this, and will probably make a heap on (sic) money,” he wrote. “Downside is, (a) bbsw gets recast as something akin libor, and (b) i go to jail that would be very bad,” he joked.

Con: It's wrong. Pro: F*ck it.

In recorded conversations ASIC plans to use as evidence against Westpac, Mr Roden said “we had a massive rate set today” in a conversation with a colleague. “I know it’s ... wrong but, I knew it was completely wrong, but f..k it, I may as well, I thought f..k it,” Mr Roden said in April 2010 conversation.

Con: It's a "bloody dangerous game." Pro: Fireworks!

In an instant chat message exchange from the same month Mr Roden talks to a Garfield Lee, a CBA trader, about BBSW being “a bloody dangerous game”. “Waiting for you to start some BBSW fireworks,” wrote Lee. “Yet again … you steal ideas/women/whatevr (sic) … have a look at yourself and leave the funny stuff to the pro’s ! ... bbsw (sic) … that’s a bloody dangerous gane (sic) … need full flakjacket stuff.”

Westpac traders were ‘aware of swap rate legal risks’ [The Australian via Matt Levine]