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yeah nipper. as NAB went down nearly 3% as i type looks it gonna follow WBC.


comes to more info of WBC's this fund raising.......

The fully underwritten Placement of new fully paid ordinary shares (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“New Sharesâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ) to sophisticated

and institutional investors in Australia and in certain overseas jurisdictions will raise $2 billion.

The Placement will be undertaken at a fixed price of $25.32 per New Share (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Placement Priceâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ),

representing a:

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ 6.5% discount to the adjusted4 last close price on ASX of $27.08 on 1 November 2019;


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ 8.1% discount to the adjusted4 five day VWAP5 on ASX of $27.56 to the close of trade on

1 November 2019.

The Placement will result in approximately 79 million New Shares being issued, representing

approximately 2.3% of Westpacâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s existing issued capital6



how many this discounted shares retail investors can get??? :unsure:



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Banks sell-off continues as early losses mount

Luke Housego


Pressure on the major banks has continued in early trade on Monday after Westpac reported a 15 per cent drop in profit.


While Westpac is in a trading halt ahead of a capital raise, the remainder of the big four banks have sustained heavy losses.


Lower rates are squeezing lenders' margins. Illustration: Joe Benke


National Australia Bank is down 2.89 per cent, Commonwealth has lost 1.25 per cent and ANZ is down three quarters of a per cent.


Some of the losses stem from institutional investors reducing their exposure to ANZ, CBA and NAB in order to buy cheaper shares in Westpac's capital raise.


Another factor, according to research from Macquarie Bank, is mortgage volume growth for Australia's major lenders.


Analysts for the bank said tighter lending controls and customers' repaying loans quicker with low rates meant smaller loan books.


The issue is further compounded by margin pressures, the research added.


"Pressure from lower interest rates more than offset mortgage repricing benefits and we expect margins to contract by 4-7 basis points in FY20", analysts wrote.


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  • 3 weeks later...

Westpac faces fines over 'serious and systemic' anti-money laundering breaches, AUSTRAC says

By business reporter Michael Janda and senior business correspondent Peter Ryan

Updated 4 minutes ago

AUSTRAC has applied to the Federal Court for civil penalty orders against Westpac for deficient oversight of its anti-money laundering and terrorism financing obligations.


Key points:

AUSTRAC alleges Westpac breached anti-money laundering laws on more than 23 million occasions

The bank recently warned investors it was in discussions with AUSTRAC and it could face a "significant financial penalty"

AUSTRAC said some of the breaches relate to transfers to the Philippines and SE Asia, raising child exploitation risks


The bank is alleged to have breached the Anti-Money Laundering and Counter-Terrorism Financing (AML-CTF) Act on more than 23 million occasions.


The anti-money laundering regulator is alleging Westpac failed to report more than 19.5 million international funds transfer instructions to it over a period of five years, for money moving into and out of Australia.


Related to these transfers, AUSTRAC alleges Westpac "allowed correspondent banks to access its banking environment and the Australian Payments System without conducting appropriate due diligence".


Among the serious breaches alleged, AUSTRAC says Westpac failed to "carry out appropriate customer due diligence on transactions to the Philippines and South-East Asia that have known financial indicators relating to potential child exploitation risks".


In a very brief statement before the media at Parliament House, AUSTRAC's chief executive officer Nicole Rose described Westpac's behaviour as "serious and systemic non-compliance".


"These AML-CTF laws are in place to protect Australia's financial system, businesses and the community from criminal exploitation," she said.

read more - https://www.abc.net.au/news/2019-11-20/west...ection=business

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i should say few many months not years. because it went as low as 23 something last year-----even it jumped back up very next day.

bought little stake yesterday. not sure how low it can go with this really bad news that panic a lot of investors.............



Westpac shares touched 10-month lows yesterday in the wake of legal action launched against it from AUSTRAC, the financial intelligence agency as the role of CEO, Brian Hartzer moved further into the frame.


And analysts said that if the role of Mr. Hartzer and his future in the position comes under pressure, so to should the future of long-time board member and chair, Lindsay Maxstead.


Westpac shares fell another 1.9% yesterday to close at $25.16 taking the losses for the past two days to more than 5% and over 12% in the past month.


The shares touched a 10 month low of $24.80 during trading. That meant the shares fell under the $25.32 issue price in the recent $2 billion capital raising.


Westpacâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s $500 million retail funding raising is now underway and closes on December 1. A price-earnings ratio of more than 7% (at the issue price of $25.32) will prove to be very attractive to retail investors.


It will prove to be a litmus test to see if small investors want to punish Westpac in any way.


Prime Minister Morrison bought into the story, saying that the Westpac board should reflect âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“very deeplyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ on the future of CEO Brian Hartzer.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“These are things that the board and the management need to determine themselves,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ Mr. Morrison told the ABCâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s AM program.


Fairfax Media papers reported funds managers were supporting Hartzer.


Senior analyst at Clime Asset Management, David Walker, told Fairfax he thought it was unlikely the CEO would go over this scandal.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“I donâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢t think this scandal will result in the CEO leaving,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ he said.


And Atlas Funds Management chief investment officer Hugh Dive said Mr. Hartzer had done well leading the bank overall.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s taken $6 billion off the market capitalisation in two days, so itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s pretty significant. I would like to say he keeps his job because I think he has done it quite well,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ Mr. Dive told Fairfax.


And according to analysts at Bell Potter Westpac remains a âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‹Ã…“holdâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“WBC is currently reviewing AUSTRACâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s statement of claim and will respond in due course. Pending this response, our cash earnings estimates are unchanged,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ Bell Potter analyst TS Lim told clients.


But he cut his forecast for Westpacâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s full-year dividend to 150 cents per share, leading him to downgrade his 12-month price target for the stock from $29.50 to $27.00.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“These are serious allegations that would likely dog the bankâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s brand value for some time to come,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ he said. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“At this point, we conservatively estimate WBCâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s potential liability at up to $3.7 billion.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ


Mr. Lim said this implies the need for further capital raising âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“whichever way you look at itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ.



imho yield and price gain towards 27.00{ 26.30 ish] within a year isn't a bad return for current market situation-------------just my thoughts!!



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shares fell under the $25.32 issue price in the recent $2 billion capital raising.


Westpacâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s $500 million retail funding raising is now underway

- the SPP, top limit now $30K, can be calculated by a VWAP formula, meaning issue price should probably be less than the insto price.

... But I wonder how many will partake, especially as there are a few costs that will hit the bottom line. Yield looks attractive, if all other challenges are wished away.

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Citibank drawn into Westpac's money laundering case

Citibank's European arm has been revealed as "Bank A" in AUSTRAC's damning legal complaint against Westpac, a potential embarrassment for the US institution which was fined $117 million last year for failing to comply with anti-money laundering regulations.


The US bank was identified by AUSTRAC as being responsible for more than 99 per cent of the 23 million transactions which were not correctly reported to Australian authorities.


Citibank is not part of AUSTRAC's case against Westpac, nor is it under investigation. But having its name associated with such a high-profile case is likely to arouse regulatory scrutiny in other jurisdictions


read more - https://www.afr.com/companies/financial-ser...20191122-p53d2j

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Swerving SWIFT: the story behind Westpacâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s money-laundering calamity

by Nathan Lynch -- 22 November 2019 -- Featured, Finance, Markets

Bnkrolling pedophiles, facilitating massive money-laundering schemes and terrorist-financing have branded Westpac, deservingly, an instant pariah of the banking world. As regulatory intelligence expert Nathan Lynch reveals here however, Westpac is unlikely to be alone. The story behind the story is industrial scale tax avoidance, the concealing of enormous cross-border payments.


The Australian anti-money laundering (AML) regulatorâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s case against Westpac for more than 23 million alleged reporting breaches will shine an international spotlight on SWIFT data reporting avoidance. Anti-money laundering experts have said the case will provide an unprecedented view into the processes that banks put in place to circumvent the SWIFT MT202 COV obligations, which took effect in 2009.


The MT202 COV requirement was introduced to allow banks and their regulators to trace the senders and recipients of international wire transfers. The cover note on SWIFT payments was an international format that SWIFT developed to facilitate data sharing on cross-border funds transfers between financial institutions.


Prior to the introduction of the MT202 COV format, the banks that processed these transactions had little visibility over the transactions they were processing on behalf of their correspondent banks.


The older MT202 messaging format did not require financial institutions to provide information on the sender and recipient of cross-border payments. This was particularly problematic with cover payments, where a combination of the MT103 and MT202 messaging formats were used.


AUSTRACâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s statement of claim makes it clear that Westpacâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s decision to offer services such as LitePay and the Australasian Cash Management (ACM) platform were designed to bypass SWIFT. This in turn had a devastating impact on financial intelligence gathering.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Westpac considered that the SWIFT payment network was costly and not an efficient means of sending low value, large volume payments for clients of global banks that need to make and receive payments around the world,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ the regulator has alleged.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“For this reason, under a number of the ACM arrangement, the correspondent banks âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‹Ã…“batchâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ funds transfer instructions from multiple payers to multiple payees and send the instructions to Westpac in a single structured data file, via non-SWIFT channels.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ


The cost savings were not in the avoidance of payments to SWIFT, however. It was in the circumvention of compliance, reporting and data collection. There was a steady line of correspondent banks and their customers who wanted to avail them of this lite-cost, lite-visibility service.


read more - https://www.michaelwest.com.au/swerving-swi...ering-calamity/

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