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Banks, behaving badly
blacksheep
post Posted: Dec 2 2019, 02:57 PM
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In Reply To: blacksheep's post @ Nov 23 2019, 07:40 PM

The Barangaroo Triangle: inside Westpac’s invisible banking regime
Westpac has been running an invisible banking system, invisible to regulators, where multinational company clients even had their own log-ons and could act like banks themselves. Michael West unpicks the Austrac action and the biggest money-laundering scandal in Australian history.
https://www.michaelwest.com.au/the-barangar...banking-regime/

extract
QUOTE
What we know from Austrac’s court filing is that in recent years $11 billion has moved into Australia without being reported, unseen by regulators. Some of the foreign “correspondent” banks, which had a relationship with Westpac, also had connections with high-risk or sanctioned countries, such as Congo, Iraq, Lebanon, Libya, Ukraine and Zimbabwe.

Austrac describes that one bank “maintained two accounts with Westpac, in its own name, each of which was used exclusively to facilitate payments for two large multinationals and their related companies … each multinational accessed the accounts through the banking logon provided by the correspondent bank”.

Which multinationals are involved has not been publicly disclosed – it isn’t even clear whether Westpac knows who they are, or if they have operations in any sanctioned country.

According to the statement of claim by Austrac, nearly all the unreported transfers came from just one bank, which the agency refers to as “Bank A”. These were largely low-value transfers.

The big transactions and the mysterious Bank B

Far more intriguing are the 36,000 incoming transfers from “Bank B”, and the 13,000 incoming transfers from Banks “C” and “D” combined. These covered the rest of the incoming $11 billion – each transaction worth about $200,000, on average.

Bank B is particularly interesting.

Westpac had set up special arrangements for Bank B and another bank, known as Bank J. Austrac knows that both banks had a “Working Capital Account” with Westpac, wherein “the underlying source of proceeds and beneficial owners are partially concealed” and “funds may be transferred to unidentified third parties”, making the whole process invisible.




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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: Nov 26 2019, 12:58 PM
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In Reply To: early birds's post @ Nov 26 2019, 11:34 AM

Something to keep in mind about those "good divys" every year - which already have been lowered by 3 out of the Big4 recently. WBC cut its final dividend from $0.94 to $0.80, ANZ gave retirees a haircut with a reduction of franking credits, NAB cut their FY dividend by 15% to $1.66. CBA was the only bank to maintain FY dividend @ $4.31.

Bank dividends under threat
Jun 7, 2019 — 12.00am
QUOTE
It is possible the big four banks will lose about $3.5 billion in revenue earned on portfolios of liquid assets as the official cash rate moves lower.

At the end of a huge week for the big four banks, it's time for those reliant on dividend income to think hard about the longer-term implications of official interest rates being lower for longer.

There is no need to panic. But as official rates set by the Reserve Bank of Australia move to 1 per cent and possibly 0.75 per cent over the next six months, there will be enormous downward pressure on bank profitability.


https://www.afr.com/chanticleer/bank-divide...20190606-p51v8l



--------------------
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: early birds  
 
early birds
post Posted: Nov 26 2019, 11:34 AM
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In Reply To: Pendragon's post @ Nov 26 2019, 11:15 AM

if it's super investment, then it is long term......3--5 years, or even a lot longer,
then you will be fine with good divy every year not much to worry about at their current price. imho though!! tongue.gif

ask more info to others as well. hope we can get more peoples to comeout with their thoughts about this thing here as well!!



 
Pendragon
post Posted: Nov 26 2019, 11:15 AM
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In Reply To: blacksheep's post @ Nov 26 2019, 10:57 AM

Well, there goes my Super investment plan!!

Sadly I have no plan B that I am happy with.

 
blacksheep
post Posted: Nov 26 2019, 10:57 AM
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In Reply To: blacksheep's post @ Nov 23 2019, 07:40 PM

Westpac woes a red flag for the big four banks

QUOTE
Westpac's woes suggest there's more pain ahead for the big four banks, given the sector's poor track record in technology investing in the pursuit of short-term profits, warns Hyperion Asset Management chief investment officer Mark Arnold.


QUOTE
"They all have been lagging in terms of technology spending for decades," said Mr Arnold, such that technology spending has been sacrificed in the pursuit of near-term profit, he argued. "They have been trying to squeeze out as much short-term profit as possible."


Look out for lower dividends in the future

QUOTE
The propensity of Australian companies to pay out high dividends to their shareholders has also played a part in the pursuit of short-term profit in a world where "being prepared to take a longer term view is key," according to Mr Arnold

https://www.afr.com/markets/equity-markets/...20191126-p53e3b



--------------------
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: Nov 23 2019, 07:40 PM
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Swerving SWIFT: the story behind Westpac’s money-laundering calamity
by Nathan Lynch -- 22 November 2019 -- Featured, Finance, Markets

QUOTE
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.


QUOTE
SWIFT manoeuvres

The banking sector has a number of dark secrets. One is that many institutions around the world put complex systems in place following the 2009 SWIFT reporting changes to ensure they could continue to facilitate lucrative transactions in the shadows. The U.S. Department of Treasury’s recent case against UniCredit, for example, found that the Italian-headquartered bank had sought specific advice from consultants on circumventing the SWIFT reporting obligations.

The settlement agreement said UniCredit engaged a German consulting firm, which helped it “construct the evasive process by which UniCredit AG carried out this illegal conduct, apparently conducted a compliance analysis at the AG NY Branch in or about 2006.”

In internal emails bank staff made it clear that this was designed to mask payments to “sensitive” countries, such as Sudan, Syria, Iran, Cuba, Myanmar, Belarus, North Korea. The aim was to ensure there was no data in field 72 of the SWIFT message for transactions involving a U.S. bank.

The bank was intentionally avoiding oversight from the fearsome U.S. Office of Foreign Assets Control (OFAC).

As the AUSTRAC statement of claim has demonstrated, however, some banks had developed an even simpler way to avoid submitting SWIFT data. With its LitePay and ACM products for international cross-border payments, Westpac could bypass the SWIFT rails completely.

The claim says this concealed evidence of cross-border payments moving to and from sanctioned countries such as Sudan, Cuba and Iran.

The statement of claim indicates that several major international banks took advantage of this service.


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



--------------------
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: Pendragon  
 

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blacksheep
post Posted: Oct 19 2019, 11:47 AM
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In Reply To: blacksheep's post @ Oct 17 2019, 07:11 PM

QUOTE
Former Credit Suisse banker Andres Pearse on Thursday for the first time directly implicated an executive of the Russian bank VTB in the fraudulent scheme commonly known as the scandal of Mozambique’s “hidden debts”.

The term refers to the scheme whereby, in 2013 and 2014, three security-linked Mozambican companies, with no business record whatsoever, obtained over two billion dollars in loans from Credit Suisse and VTB. The loans were only possible because the Mozambican government of the day granted illegal loan guarantees, in violation of the budget law.

American prosecutors have been pursuing the case, because some of the money laundered passed through US banks, and because US investors were defrauded when they purchased chunks of the debts. The US investigators concluded that at least 200 million dollars of the loan money was spent on bribes and kickbacks.

https://clubofmozambique.com/news/pearse-im...-report-144840/



--------------------
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: Oct 17 2019, 07:11 PM
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Bankers behaving badly - in this case

Ex-Credit Suisse banker says he hid $45 million worth of bribes
QUOTE
Pearse tells Brooklyn jury other bankers also accepted bribes
Banker says son of former Mozambican president got $50 million
Former Credit Suisse Group AG banker Andrew Pearse told a jury in Brooklyn, New York, that he pocketed at least $45 million in illicit payments for his role in the arrangement of loans worth $2 billion to companies in Mozambique.

Pearse, 49, who had pleaded guilty to conspiracy, testified that at least four other Credit Suisse bankers also took millions of dollars in bribes from shipbuilder Privinvest Group.

“They all played a role in ensuring the bank made the loans,” Pearse testified Wednesday. “They provided the bank with false information about Privinvest.”

Pearse is a key witness against Jean Boustani, a Privinvest salesman described by prosecutors as the “mastermind” of a scheme to defraud U.S. investors. Prosecutors allege Mozambican government officials, corporate executives and investment bankers stole about $200 million in loan proceeds.


read more - https://clubofmozambique.com/news/ex-credit...-bribes-144606/



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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: Oct 8 2019, 11:49 AM
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Liberal and Labor leadership lying about bank interest rates
QUOTE
These are dismal days for Australian politics on a number of fronts.

A quick example is that the Prime Minister, Treasurer, Opposition Leader and Shadow Treasurer apparently have no idea of how the Australian financial system works – or are happy to routinely mislead and lie.

As predictable as stories about Christmas “killer toys”, the pollies fell over themselves to declare the banks should pass on the latest Reserve Bank’s interest rate cuts in full.

“They never learn. They honestly never learn and it’s disappointing,” said Prime Minister Scott Morrison, indicating either he’s never known, or worse.

The banks were putting profits before customers, former banker Josh Frydenberg proclaimed, faking outrage.


QUOTE
As this RBA graph shows, most of the money banks lend comes from domestic depositors.

That’s a desirable thing, as we discovered during the GFC when foreign borrowings made up a bigger percentage of funding and threatened to be flighty.

As this RBA graph shows, most of the money banks lend comes from domestic depositors.

That’s a desirable thing, as we discovered during the GFC when foreign borrowings made up a bigger percentage of funding and threatened to be flighty.


continue reading - https://thenewdaily.com.au/money/2019/10/07...interest-rates/



--------------------
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: Oct 4 2019, 11:35 AM
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CBA faces criminal charges over CommInsure scandal

QUOTE
Australia's largest bank is facing 87 criminal charges over unscrupulous practices in its life insurance arm — the first major bank to face criminal charges following the banking royal commission.

Commonwealth Bank's insurance arm CommInsure has been charged with 'hawking' for offering to sell insurance products through unsolicited phone calls.

The Australian Securities and Investments Commission (ASIC), alleges CommInsure did not comply with all of the hawking exceptions in section 992A(3) of the Corporations Act.

CommInsure has been sold by CBA, but the bank is liable because it owned the insurance arm at the time.

The maximum fine is about $1.8 million, ASIC said.

More to come.




--------------------
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
 
 


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