Westpac is not backing down from its trial with the corporate regulator over allegations of inter-bank rate rigging, despite ANZ and National Australia Bank's decision to settle their cases.
Counsel for all three banks and the Australian Securities and Investments Commission returned to the Federal Court on Monday to discuss their next steps after NAB settled its case for $50 million on Friday.
ANZ was the first bank to settle with ASIC on October 23 on what was supposed to be the first day of a trial lasting up to five months.
"I congratulate the parties in each of the ANZ and NAB proceedings for the hard work in getting to this stage," Justice Jonathan Beach said on Monday.
Counsel for ASIC's case against Westpac, Philip Crutchfield QC, says he believes the trial will finish before the end of the year.
"We are endeavouring to finish this trial well in advance of Christmas," he told the court.
Justice Beach is considering referring the ANZ and NAB cases to another judge for finalisation, while he presides over the Westpac trial.
"That's conditional on the Westpac matter proceeding," he said.
But if Westpac also settles with ASIC, then Justice Beach will likely oversee all three cases.
ANZ has not provided any details about the agreement it reached with ASIC except to say it had prepared for the financial impact.
Settlements remain subject to court approval. NAB and ANZ will return to court on November 11 for a hearing on penalties.
When ASIC began its cases against NAB and ANZ, it wanted the Federal Court to find the banks failed to comply with financial services laws and impose a penalty.
NAB has agreed to pay a $10 million penalty to ASIC, $20 million in legal costs, and make a $20 million donation to a financial consumer protection fund nominated by the regulator.
The bank also admitted employees trading in the bank bill swap rate attempted to engage in unconscionable conduct on 12 occasions in 2010 and 2011.
The BBSW, as it is known in financial markets, is a key benchmark used to price billions of dollars of loans, bills, bonds and derivatives.
ASIC began investigating major banks in 2012 over the integrity of past bank bill swap rate settings.
The rate determines what banks charge to lend money to each other and is not directly linked to mortgage or other retail lending interest rates.
ANZ was the first bank to face legal action over suspicions traders manipulated rates to make more money.
Westpac was the second bank to face legal action, followed by NAB.
Westpac and ASIC will return to court on Tuesday.
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