Commonwealth Bank fined $100,000 over botched capital raising disclosure

COMMONWEALTH Bank has been fined the maximum $100,000 by the corporate watchdog for failing to disclose the full extent of its expected losses as it undertook a botched $2bn capital raising last December.

The expected losses centred around its dealings with the failed companies Lehman Brothers, Allco Finance Group and ABC Learning Centres.

During the capital raising the bank did not disclose more than four hours that there had there had been a “significant” increase in the amount of money it would put aside to cover likely loan defaults, the Australian Securities & Investment Commission said.

Read the details of how the CBA capital raising went down at news.com.au.