Morrison v. National Australia Bank Ltd

by Project Censored
Published: Updated:

This landmark case helped decide the future for foreign trade.  In late 1998 the National Australia Bank (NAB) bought a company out of Jacksonville, Florida called HomeSide Lending, Inc.  They bought it so they could have an office in the United States as well as a place to run its main mortgages.  In 2001 after three years of running HomeSide Learning the NAB was told to write down the worth of its profits and assets.  After first overlooking its assets NAB knew that this company was costing them money and would radically cause share prices to fall and send part of the trade market into frenzy.  So the CEO and higher officials of NAB decided to deceive share holders and make fake reports and numbers to make everything look better than it was.  After a very short while it was discovered that this was being done and this was taken to court.  Eventually Morrison v. National Australia Bank Ltd made it to the Supreme Court, which considered the extraterritorial effect of US securities legislation. Its effect was to bar all federal securities fraud suits in the US for securities traded on a foreign stock exchange. However the impact of the decision was almost immediately reversed by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Student Researcher:  Jeffrey Bouchard

Faculty Evaluator:  Elliot D. Cohen, Ph.D.

Indian River State College


Luke Green, “Morrison v. National Australia Bank – The Dawn of a New Age?”—the-dawn-of-a-new-age.html

MORRISON v. NATIONAL AUSTRALIA BANK LTD. ( No. 08-1191 ) 547 F. 3d 167, affirmed.


Hannah Buxbaum, “Morrison v. NAB and the F-Cubed Problem”  The Conglomerate