After a month of speculation, law firm Maurice Blackburn filed a statement of claim in Federal Court yesterday saying the CBA board knew of potential AML breaches in 2015 and failed to tell shareholders.
It’s estimated that the class action could cost the bank hundreds of millions if the suit proves successful. This doesn’t include the AUSTRAC litigation which will begin in November.
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Shares of CBA are down fractionally at $76.40 in early trade. Our ALGO engine triggered a sell signal for CBA at $84.20 on July 4th. Since then the shares have posted a low of $73.20 on September 8th.
It’s our base case that the recent recovery in the share price is corrective and that slower loan growth combined with the potential litigation will weigh on the shareprice
Technically, the next key support level is found at around the $71.00 level.
Commmonwealth Bank
