Labor are claiming Peter Dutton bought a number of ‘highly unusual’ bank shares during the global financial crisis, and have demanded the Opposition Leader disclose if he was privy to any ‘sensitive information’.
A forensic analysis of Mr Dutton’s past declarations to parliament, carried out by news.com.au, has revealed that he declared a share-buying spree involving the big banks the day before Labor announced a bailout in 2009.
Before the bailout, shares in Australia’s top four banks – NAB, Commonwealth, Westpac and ANZ – were at a record low before they surged after the proposed government intervention.
While Mr Dutton was not in government at the time, the Labor government was regularly briefing opposition leader Malcolm Turnbull about major stimulus injections.
On Tuesday, Employment Minister Murray Watt demanded the Opposition Leader provide an explanation for the ‘highly unusual’ timing.
‘This is a guy who had no real history of trading in bank shares,’ Mr Watt told reporters.
‘But he entered into an absolute frenzy of buying and selling bank shares over a very small period of time that just happened to coincide with the time that the Rudd government was planning and delivering multi-billion dollar bank bailouts.’
He added: ‘What shares did he buy, exactly, (and) when did he buy them?
A forensic analysis of Peter Dutton’s past declarations to parliament, carried out by news.com.au , has revealed that he declared a share-buying spree involving the big banks the day before Labor announced a bailout in 2009
‘How much profit did he make on these share trading deals?
‘And also what access did he have to sensitive information that wasn’t available to the rest of the Australian public?’
However, Labor has stopped short of out-and-out accusing Mr Dutton of insider trading.
‘That’s a matter for Peter Dutton to explain,’ Prime Minister Anthony Albanese told reporters when quizzed directly on Tuesday morning.
Mr Dutton’s office denied he had any access to sensitive information and accused Labor’s ‘dirt unit’ of trying to stir up controversy ahead of the election.
‘Mr Dutton had no access to any sensitive information on these matters, nor was he privy to government briefing on the GFC,’ a a spokesperson for Mr Dutton said.
News.com.au revealed that Mr Dutton had not bought or sold any shares for the three years prior to 2008.
However, between October 2008 and March 2009, he updated his register of interest 13 times to indicate that he had either bought or sold shares.
While Mr Dutton was not in government at the time, the Labor government was regularly briefing opposition leader Malcolm Turnbull about major stimulus injections
On Tuesday, Employment Minister Murray Watt demanded the Opposition Leader provide an explanation for the ‘highly unusual’ timing
It is Labor’s contention that Mr Dutton splurged on shares in the big banks shortly before the Rudd-Gillard government unveiled large bailouts.
On January 23, 2009 Dutton declared that he had purchased National Australia Bank, Commonwealth Bank and Westpac shares.
All three banks experienced record low share prices on that date.
While it is not clear if Mr Dutton bought the shares on January 23, or the days prior, all MPs must update the register within 30 days.
Moreover, Mr Dutton made a number of individual entries across this period, suggesting he was timely with his entries.
Regardless, on Saturday 24 – the day after Mr Dutton bought a ‘quantity’ of shares in three of Australia’s top four banks – the Rudd-Gillard government announced the Australian Business Investment Partnership (ABIP), a $4 billion stimulus package to provide refinancing loans to keep the commercial property market afloat.
The ABIP, which was delivered in partnership with Australia’s major banks, never materialised because it was opposed by the Opposition.
However, it spiked the share prices of the big banks.
For example, Commonwealth Bank shares rose from $23.94 at the close of trading on January 23 to a high of $29.11 on 3 February – an almost 22 per cent rise in just under a fortnight.
Mr Dutton declared he had sold Commonwealth Bank shares on that day.
On January 23, 2009 Dutton declared that he had purchased National Australia Bank, Commonwealth Bank and Westpac shares (pictured)
Commonwealth Bank shares rose from $23.94 at the close of trading on January 23 to a high of $29.11 on 3 February – an almost 22 per cent rise in just under a fortnight. Mr Dutton declared he had sold Commonwealth Bank shares on that day
Since he is not obliged to declare the number of shares he bought and sold, it is impossible to determine how much money he made.
‘I think it is highly unusual that we see a senior member of the opposition at the time who has no history of buying and selling bank shares all of a sudden take a great interest on the day of a record low share value and the day before a large bailout is announced by the government that only a very small number of people knew about,’ Mr Watt said.
‘It’s up to Peter Dutton to explain to the Australian people, is there some really incredible coincidence or is there something more to it?’
Mr Dutton’s office said that ‘all updates to Mr Dutton’s register of interests were made at the appropriate time’.
‘If the Albanese Government’s dirt unit spent more time being focused on fixing Labor’s cost of living crisis rather than obsessing about Peter Dutton, Australians might be better off,’’ a spokesperson added.