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Banks, behaving badly
triage
post Posted: Dec 11 2018, 10:12 AM
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Not sure where exactly that ACCC has been during these years of bankers running amok but the good news is that once the ACCC get onto a case they go in boots and all (unlike the dandies at ASIC and APRA). So they reckon that once again the bankers didn't let a good crisis go to waste. When APRA insisted that bankers restrict interest only loans to 30% of the home loans they issued going forward the banks took the opportunity to act in concert and increase the interest rates on existing interest only home loans. By so doing the banks pocketed in excess of one billion bucks of windfall profit in just the last year.

Hopefully the ACCC takes 'em to the cleaners.

https://www.abc.net.au/news/2018-12-11/exis...s-accc/10604314



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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
blacksheep
post Posted: Dec 10 2018, 08:27 PM
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Aussie banks on the BBQ today
ANZ down -4.16%
CBA down -2.98%
NAB down -2.54%
WBC down-3.38%

THE BIG FOUR BANKS (ANZ, CBA, NAB, WBC)
https://www.shortman.com.au/market
Attached File(s)
Attached File  anz.png ( 96.24K ) Number of downloads: 2
Attached File  cba.png ( 98.11K ) Number of downloads: 3
Attached File  nab.png ( 91.95K ) Number of downloads: 2
Attached File  wbc.png ( 95.76K ) Number of downloads: 2

 




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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Dec 5 2018, 03:22 PM
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And we thought they were now going to play nice lmaosmiley.gif

There's a new place to lodge complaints about the banks — and it's already been flooded
By business reporter Stephanie Chalmers
Posted 24 minutes ago

QUOTE
The new "one-stop shop" for financial complaints only began a month ago, but it has already been flooded with more than 6,500 complaints

The Australian Financial Complaints Authority (AFCA) opened on November 1 and has average 310 complaints per business day so far.

The Federal Government first announced the new dispute resolution body in September last year, as it attempted to head off a royal commission into the banks and financial services sector.

AFCA has replaced three separate bodies — Financial Ombudsman Service, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal — and to date has experienced a 47 per cent increase in complaints received, compared to its predecessors.

While most complaints were made by individuals, AFCA said 460 were lodged by small businesses.


read more - https://www.abc.net.au/news/2018-12-05/new-...laints/10585690





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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
triage
post Posted: Dec 4 2018, 07:30 PM
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In Reply To: blacksheep's post @ Dec 4 2018, 03:09 PM

As has been pointed out elsewhere, why would anyone pay to hear what the LNP thinks they might do regarding the banking royal commission findings when everyone knows that will be the job of the incoming Labor government. But yeah obscene that the mob that 27 times knocked back the idea of a banking royal commission being needed are now trying to profit from the rc's existence. There is a saying: "never let a good crisis go to waste".



--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog

Said 'Thanks' for this post: blacksheep  
 
blacksheep
post Posted: Dec 4 2018, 03:09 PM
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Posts: 5,699
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In Reply To: blacksheep's post @ Dec 2 2018, 12:48 PM

Have to agree - "It’s a sickening insult to the victims of banking misconduct who are still trying to put their lives back together."

Assistant Treasurer Stuart Robert to headline fundraiser about the banking royal commission
QUOTE
Assistant Treasurer Stuart Robert will headline a Liberal Party fundraiser that promises political donors an insight into the government's potential response to the banking royal commission.

The lunch, hosted by Liberal National Party backbencher Andrew Wallace, has been slammed by Labor as a crass attempt to capitalise on an explosive probe the Coalition had long opposed.


https://www.smh.com.au/politics/federal/ass...204-p50k1i.html





--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Dec 2 2018, 12:48 PM
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In Reply To: triage's post @ Dec 1 2018, 10:19 AM

triage - it gets worse (if this article by Michael West is correct) - Investigation: how the government is “punishing” bank crimes with tax breaks

QUOTE
Are the victims of bank crime to blame for not being educated? Michael West investigates where the money has gone from corporate law enforcement and discovers the banks have been getting tax deductions.

THE CORPORATE REGULATOR’S decade of deals with the banks began when chairman of the Australian Securities & Investment Commission Tony D’Aloisio struck “Enforceable Undertakings” with ANZ Banking Group in March 2009.

ANZ had been a key player in the spectacular collapse of the financier Opes Prime. ASIC had been investigating ANZ since January 1, 2007. Instead of dragging the bank into court at great cost, D’Aloisio did a “no-blame” deal with ANZ bosses who agreed to “complete a program to remedy deficiencies in operational procedures”.

In August 2007, ANZ appointed receivers to the wine company Evans & Tate Limited. In December 2007, the receivers sold Evans & Tate’s Oakridge Winery to a company jointly owned by Tony D’Aloisio and his wife.

Suffice to say, ASIC’s 2009 Enforceable Undertakings (EUs) with ANZ had the unfortunate appearance of a mutual back-scratching exercise. And the back-scratching rose to new heights in the ensuing years as ASIC dealt with rising, systemic fraud by the bank, particularly in 2017 and 2018 as the Royal Commission was coming on.

Rather than use its considerable powers to enforce the law, ASIC has chosen to pursue enforcement by words. Rather than prosecute or issue fines, the regulators arrange for the banks to: (1) recognise ASIC’s concerns without admitting wrongdoing; (2) accept a remediation process; and (3) make a “Community Benefit Payment”.

These deals with the banks are struck in a way which allows ASIC to achieve a key performance indicator, that is, educating the masses about financial literacy. The Community Benefit Payments set out in the EUs are made to not-for-profit entities which deliver education services in financial literacy.



QUOTE
The EU money trail

The payments which are routed through Financial Literacy Australia Limited have gone to good causes. According to FLA’s financial statements, $17.9 million has come in the door in donations since 2014. It has directed $6 million over four years in grants.

This is a company with no full-time employees, two part-time employees and – at last balance date of 31 December 2017 – $12 million in cash; yet a company which is being wound up, as revealed by Paul Clitheroe last night.

It’s directors – Robert Brown, Paul Clitheroe, Craig Dunn, Linda Elkins, Fiona Guthrie, Elaine Henry, Anthony Mackay, Ian Silk, Michael Smith (retired) – are well connected.

Smith was formerly CEO of the ANZ and Dunn a former CEO of AMP. Paul Clitheroe and his partners sold their IPAC financial advice business to Commonwealth Bank, bought it back and then sold it to AMP. Fiona Guthrie heads up Financial Counselling Australia. Air Commodore Robert Brown is chairman, Australian Defence Force Financial Services Consumer Council and Ian Silk the CEO of Australian Super, the biggest fund in the country.

The company’s website shows FLA has directed its donations to worthy causes such as Brotherhood of Saint Lawrence and Good Shepherd ANZ – “The Firmer Foundations program uses a small group and coaching model to build the financial capability of women who have experienced family violence, economic abuse and/or inter-generational poverty”.


QUOTE
The Literacy Club

Again, the same names bob up. Government appointed members of the Australian Financial Literacy Board are Paul Clitheroe, Robert Brown, Fiona Guthrie and Elaine Henry.

Although ASIC declined to respond, Paul Clitheroe explained that Financial Literacy Australia Limited is being wound up and replaced by Ectsra. He pointed to a May 28, 2018, media release of then Minister for Revenue and Financial Services, Kelly O’Dwyer, which indicates the Turnbull government established Ecstra and arranged for ASIC to direct it $40 million of EU monies.

Other members of the Literacy Board include ASIC deputy commissioner Peter Kell and newish chairman James Shipton. Shipton is a former executive of Goldman Sachs, which agreed to an EU with ASIC in July this year for controversial share market transactions involving private hospital group, Healthscope.


read more - https://www.michaelwest.com.au/investigatio...ith-tax-breaks/

When one looks at the FLA website https://financialcapability.gov.au/ - under research - you see a glossy report by EY Sweeney - a fully integrated part of the EY Advisory business. https://financialcapability.gov.au/files/af...ey-findings.pdf - who are mentioned in another recent Michael West investigation

QUOTE
Matthias Cormann has confirmed the government’s $3 billion spend on the Big Four consultants, responding to Questions on Notice by Greens’ leader Richard Di Natale last week. Although the Finance Minister responded accurately to the questions put, he is almost a billion dollars short on the actual, up-to-date figures. Michael West reports on the mystery of exploding government spending.

The question was all about the billions in taxpayers’ money the government is splashing on the Big Four global accounting firms: EY, PwC, Deloitte an KPMG – large political donors all.

https://www.michaelwest.com.au/discovered-m...lar-black-hole/





--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: triage  
 


triage
post Posted: Dec 1 2018, 10:19 AM
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In Reply To: Mags's post @ Dec 1 2018, 08:46 AM

Mags - it gets worse - Ken Henry is on the board of dirctors of the ASX. Gamekeeper or poacher?



--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
plastic
post Posted: Dec 1 2018, 08:49 AM
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NZ Reserve Bank boss man says all NZ banks are under capitalized and need more capital.

Watch this space. Margin call coming. Music about to stop.



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What did Uncle Mel do to us?
 
Mags
post Posted: Dec 1 2018, 08:46 AM
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I believe very little will come from this RC. The banks may bleed a few customers, be hit with a few million dollar fines. But that's like an electrician having his phone service cut for a few days (bleed customers) and a $200 fine. Wont even feel it.
In fact, it's the time the directors needed to 'take off' to appear at the RC that probably hurt the most.
When you have a guy like Ken Henry, slumped in his chair on the stand, earning $15,000 per week (I assume he's also on other boards, so what's his real income??) treat it as a 13 year old obnoxious boy does the class teacher, then screw up his nose and say he'll never be compliant, and how would you monitor it anyway.... (This from a guy who was in charge of the tax system...funny how the tax system says it knows all...)
A total joke.


 
nipper
post Posted: Nov 30 2018, 07:25 PM
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and then
QUOTE
Cuffelinks Newsletter Edition 282

To[day] is the final day of Royal Commission hearings. We have never seen anything like it before, and most senior bankers hope we never will again. Kenneth Hayne will produce 1,000 pages of censures and recommendations in February 2019 that will change the finance industry.

I misjudged what the Commission could achieve, mainly for three reasons. First, I thought it would be more like a court, where QCs defend their clients and produce contradictory arguments. In fact, we heard no defences from QCs after Kenneth Hayne slapped down NAB's counsel, Neil Young. Hayne wagged his finger at Young and shouted:

"You will not give her her answer, Mr Young. You will not. Do you understand me?"

After that, the bank QCs became almost irrelevant during formal proceedings, as demonstrated in the final round by Peter Collinson, QC for ASIC, who said meekly:

"Can I raise an objection, Commissioner. My friend has put this a number of times. I don't want to help the witness but it's not what the paragraph says."

Rowena Orr simply rephrased the question and continued without missing a beat.

Second, the ability to source internal documents and produce them in hearings without notice generated significant unease and incrimination for witnesses. Context in responses was not allowed. Imagine being accountable for every email or paper written for the last 10 years. There will be a lot more business carried on verbally in coffee shops in future.

Third, the public gallery, saturation media coverage and live television broadcasts placed witnesses in a harsh spotlight that no courtroom or ASIC interrogation could match.

Exclusive view from the top of CBA

At the end of the hearings where many reputations have been shredded, a member of CBA's Executive Committee for 13 years, Garry Mackrell, gives a fascinating insider view into how the Bank changed over the years. It's a must-read as Garry has little sympathy for imposing formal social objectives on banks, and he believes the talk about culture is rubbish. NAB Chair Ken Henry told the Commission that no board or regulator can 'ensure' risk controls are working. His bank has over 14,000 compliance obligations and he said it will never be fully compliant.
https://mailchi.mp/cuffelinks/edition-282?e=f6b4a7324d



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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