Competition regulator chief wants ANZ chief's prosecution

Samuel alleged Smith had engaged in price signalling when the latter said ANZ might increase its interest rates over and above the level imposed by the Reserve Bank.

Competition chief Graeme Samuel says he would have liked to prosecute ANZ Bank boss Mike Smith for anti-competitive price signalling in 2009 but lacked the regulatory powers.

Giving evidence before the Senate economics committee inquiry into competition in the banking sector, Mr Samuel said Tuesday banks and other businesses were able to co-ordinate price moves with "a wink and a nod" without breaking the law.

Under the Trade Practices Act, the ACCC needed to be able to prove that both parties in a price-fixing deal had reached an understanding of how each would behave, Mr Samuel told the inquiry.

This meant that one business could tell another of its pricing intentions without breaking the law, provided the other business did not explicitly agree to any particular course of action such as an identical price adjustment.

"Our concern is that you can just as easily set up a process of co-operation and co-ordination between competitors without a commitment," he told the committee during a hearing in Melbourne.

Mr Samuel alleged Mr Smith had engaged in price signalling in October 2009 when the ANZ chief executive said the bank might increase its interest rates over and above the level imposed by the Reserve Bank.

View the full story in The Australian.