Bank shakes up board after scandal, but investors not appeased

Sydney

Commonwealth Bank of Australia (CBA), the country's biggest lender, announced a major board shake-up on Monday as it scrambles to shore up investor support following allegations that it oversaw thousands of breaches of anti-money laundering rules.

But the ouster of a third of the bank's non-executive board, including the first two directors to leave since the allegations were made public on Aug 3, failed to impress shareholders as CBA stock touched 10-month intraday lows on the news.

The board overhaul came as CBA faced the first day of court hearings into the allegations. While it did not deny that illicit transfers had taken place, it said that it would contest its level of responsi…