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CBA, COMMONWEALTH BANK OF AUSTRALIA
mrbear
post Posted: Aug 15 2018, 07:52 PM
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In Reply To: mullokintyre's post @ Aug 15 2018, 06:18 PM

Good old reliable banks charging the dead fees,at least they don't complain.

I couldn't care less who they charge as long as they remain profitable and pay out divs.

Half the fools in the country think they can do without banks,but I can see a lot of bleating as these people try to borrow money in the future and the banks will not hand it out as easily.

Maybe they would be happy if the banks and the country go bankrupt,they of course will still get their welfare check (they think )every fortnight.

I have had this conversation with a few welfare friends and to be honest I could not believe how dumb they really are.

They cannot comprehend that someone like me has to pay a heap of tax so the government can pay it to them.maybe they think they just print more of the stuff when it gets in short supply,cheers mrbear





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triage
post Posted: Aug 15 2018, 07:47 PM
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In Reply To: mullokintyre's post @ Aug 15 2018, 06:18 PM

Mick

There is nothing more black and white than fiduciary duty and the royal commission has shown fairly conclusively that a number of banks have embedded trustees into their organisation and that those trustees have repeatedly put other parts of the organisation before those customers whose interests they were required to protect. Same goes for bank employed financial advisors who have a fiduciary duty not to push their clients into bank products that are objectively inferior to other similar products available in the market.

Regarding super funds, it is patently obvious that industry funds are a far better option than the rubbish usually offered by banks. It used to be that the default superannuation fund for most employees was an industry fund but it was a wilful decision by this government to allow bank run superannuation funds into this market. The banks are of course making an absolute killing as most people are simply not financially literate enough to know any different. In my opinion that is why the current government was so much against having a banking royal commission (I think they knocked it back 23 times before finally being forced into it): they are complicit with the banks.



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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

Said 'Thanks' for this post: blacksheep  
 
mullokintyre
post Posted: Aug 15 2018, 06:18 PM
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In Reply To: triage's post @ Aug 15 2018, 05:32 PM

I have always found it quaint that people believe that any ASX listed company does anything except maxmise its chances of making money.
Thats what they are there for.
Separating super funds industry from the banks will not change much.
The idea that they have some sort of social contract with society is laughable.
If they want someone to only consider the benefits of the investors, then make their remuneration directly proportional to the returns.
or make them not for profit.
Mick




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sent from my Olivetti Typewriter.
 
triage
post Posted: Aug 15 2018, 05:32 PM
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In Reply To: blacksheep's post @ Aug 15 2018, 02:57 PM

What ASIC says it wants to do is moot (as used in the US) imo. I would be quite surprised if one of the recommendations of Mr Hayne is not to disband both ASIC and APRA and to put in a totally new regulatory system for the financial sector, with a regulator that is an enforcer of the laws and regulations of the financial sector. Time and time again the counsels assisting Mr Hayne have pointed out instances where ASIC failed to take the enforcement action available to it against banks who were breaking either legislation or regulations.

Quite clearly the banking commisison is also heading towards a recommendation to break up the big "banks", with numerous examples of one division of a bank protecting or benefitting another division of that bank to the detriment of its customers. But clearly the current regulators have not been up to the task of dealing with major corporations intent on getting away with as much as they can.





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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

Said 'Thanks' for this post: blacksheep  
 
blacksheep
post Posted: Aug 15 2018, 02:57 PM
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In Reply To: frootloops's post @ Aug 15 2018, 02:50 PM

More dead clients were charged money for financial advice by CBA

QUOTE
The latest revelations of dead people being charged for advice came as CBA also faced tough scrutiny over lags in putting customers in low-fee super products; and over its dealings with its insurance arm and asset management business.

QUOTE
On top of these breaches, it was also revealed that APRA had asked CBA to move 60,000 existing "accrued default amounts" held in "choice" products more quickly than the bank planned, but it rebuffed the request.

Expensive insurance
Mr Hodge tabled minutes from a 2014 board meeting of Colonial's trustee, which said following APRA's request would have had "significant business implications". Instead of moving members to MySuper funds more quickly, as APRA wanted, Colonial planned to move default accounts to MySuper in 2016 and 2017.

Mr Hodge also tabled an internal review that found CBA's CommInsure, which Colonial uses as its life insurer for default super, was in many cases far more expensive than rivals.

Mr Hodge asked Ms Elkins what this said about the adequacy of the “supposedly arms-length” negotiations between CommInsure and Colonial, and whether it had ever seriously considered dealing with a different life insurer outside the CBA group.

“On balance, the decision that’s been made has been to negotiate with the incumbent insurer,” Ms Elkins said.

https://www.smh.com.au/business/banking-and...815-p4zxku.html

These Banks seem to take a lot of notice from APRA sad.gif and now ASIC want to embed a "watchdog" into the Banks - I'm sure that's going to work rolleyes.gif



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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
 
frootloops
post Posted: Aug 15 2018, 02:50 PM
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In Reply To: blacksheep's post @ Aug 15 2018, 02:41 PM


Ex Div.


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blacksheep
post Posted: Aug 15 2018, 02:41 PM
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In Reply To: nipper's post @ Aug 11 2018, 09:58 AM

Big drop - down 2.73% @ $73.79. More Banking Royal Commission blues?
Short positions @ 9 August = 1.87%
https://www.shortman.com.au/stock?q=cba

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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
 
nipper
post Posted: Aug 11 2018, 09:58 AM
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QUOTE
... [T]he banks feel they are awash with funding—they actually have too much cash. CBA recently announced a buy-back of $8.8 billion of its bonds precisely to reduce excess liabilities.Second, deposit growth is actually strong, not weak, as CBA reported this week: the deposit share of its funding base rose from 67 per cent to 68 per cent over the 2018 financial year. Indeed, CBA has experienced explosive growth in low-cost transaction accounts, which have jumped almost 11 per cent over this period.

The major banks are full on funding because asset growth has been lower than they expected.

According to the RBA, the total value of loans on bank balance-sheets has expanded at an average annual 8.1 per cent pace since 2007. Yet over the last 12 months this has slumped to 4.6 per cent as tighter lending standards have gripped.

This is almost certainly less than what bank treasurers were forecasting when they started the 2018 financial year, which means they grew their liabilities (deposits and bonds) a little too fast.

This was again borne out in CBA's results, which revealed that its household deposit growth of 4.2 per cent had outstripped the 3.7 per cent increase in the value of its home loans....

Properly understanding balance-sheet dynamics also sheds light on Australia's languid money supply growth. The key driver of this has been a dramatic drop-off in the volume of short-term debt issuance, which has been fuelled not by adversity but rather by APRA's new "net stable funding ratio".

This has forced the banks to replace short-term debt with longer-term securities to minimise the mismatch in the tenor of their assets (30 year home loans) and liabilities (deposits and bonds).

In 2015, 40 per cent of CBA's debt issuance had a term of 3 years or less. By 2018 that ratio had dropped to just 11 per cent as CBA doubled the proportion of bonds it issues with terms of more than 5 years. Of course, this reduction in balance-sheet risk comes with a price for shareholders: longer-dated debt is much more expensive than short-term money.
https://www.afr.com/personal-finance/why-it...20180810-h13sgn






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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
 
blacksheep
post Posted: Jun 14 2018, 11:05 PM
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CBA & WBC SP not far from 5 year lows
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NAB & ANZ not quite there yet
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QUOTE
Australian banks are being squeezed by higher borrowing costs as the US Federal Reserve accelerates its interest rate hikes and drains liquidity from global financial markets.

https://www.afr.com/markets/how-the-big-aus...20180613-h11cx5



--------------------
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: Jun 5 2018, 06:26 PM
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In Reply To: mrbear's post @ Jun 5 2018, 05:11 PM

Yep mrbear, as Mick points out on the ANZ thread, now the authorities are starting to talk about jailtime for banking executives. The mere threat of it will likely have a much greater impact on the big banks' behavior than any fine or reprimand would have. It is not the bank's customers or shareholders that are being caught rorting the system, it is wilful mindful decision making by career banking professionals, so it makes sense that the bulk of the penalties should fall on the bank executives, not on bank's customers or shareholders.



--------------------
"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
 
 


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