The Australia and New Zealand Banking Group (ANZ), which owns the ANZ and National Banks in New Zealand, has decided to stop new lending to stock margin lending firms across the Tasman in the wake of the collapse of Opes Prime. The news came in an interview givenby CEO Mike Smith on businessspectator.com .
ANZ is conducting a review of its stock margin lending practices.
The Australian Financial Review is also reporting that ANZ has placed a A$500 million charge against companies associated with margin lender Chimaera Capital, which looks to become the third Australian stock margin lender to collapse after Opes Prime and Lift.
Opes Prime's crisis, with all its accusations of insider trading and account manipulation, has been well documented.
Many of the firm's clients are without recourse since the ANZ Bank - Opes' major secured creditor - seized their shares and was in some cases selling them.
Lift Capital operates as a margin lender and has about 1,600 clients, with interests predominantly in listed shares and managed funds.
The firm, which is run by Sydney financiers Bassem Jammal, Robert Bucci and Joe Nakat, appointed McGrath Nicol as administrators on Friday.
Tricom, which got into trouble earlier in the year, is still winding down its loan book and bolstering its capital.
- INTEREST.CO.NZ, additional reporting by NZHERALD STAFF
