Last week, Westpac’s shares fell by 7.5% as fury erupted over its money laundering scandal. Since it surprised the market two weeks’ ago with a $2.5 billion capital raising, its share have lost 9.7%. Adjusting for the dividend payment, it is down by 6.7%. By comparison, NAB has lost 4.8%, ANZ 2.2% while the Commonwealth Bank has added 0.5%.
The question many Westpac shareholders will have, particularly as they also have a current opportunity to buy more shares in a share purchase plan (SPP), is all the bad news out? And, what’s the future for Westpac?
Let’s look at the scandal, how the market and Westpac are likely to handle this, and the share purchase plan. Should you take part?