Media Release - NAB Confirms It has Demanded Compensation from Two Foreign Currency Brokers - 10 November 2005

National Australia Bank today confirmed that it issued letters of demand on 6 September 2005 claiming compensation exceeding $539 million against ICAP plc and another broker in relation to the foreign currency options trading losses announced in January 2004. 

The National is seeking compensation for losses including foreign currency trading losses, additional capital expenses and loss of profit as a result of the disruption to foreign currency options trading services.  The National has also indicated its intention to seek exemplary damages against ICAP plc in any proceedings brought against that firm.

The National has conducted a detailed forensic investigation over the course of more than a year in preparing its claims, and has also had regard to evidence gained during inquiries by the Australian Prudential Regulation Authority and PricewaterhouseCoopers.

The National is confident it has a strong case to seek compensation from the parties involved in the foreign currency options trading losses.  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. 

For further information:

Brandon Phillips
Group Manager, External Relations
03 8641 3857 work
0419 369 058 mobile

Samantha Evans
External Relations Manager
03 8641 4982 work
0404 883 509 mobile