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Banks, behaving badly
mullokintyre
post Posted: Jun 8 2020, 02:34 PM
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So, it looks like the banks are fighting back!

QUOTE
An incipient rebellion by the banking industry against draconian anti-money laundering enforcement measures is intensifying, as leaders compare Westpacs $1bn penalty and career-ending accountability moves to Canberra emerging unscathed from the robodebt disaster.

Theres no logic behind the two outcomes, particularly if you believe Centrelinks debt recovery program is a more grievous failure because it preyed on (vulnerable) people, a senior banker said.

While acknowledging Austracs serious allegation of a link to child exploitation in some payments made by 12 Westpac customers, he said the banks transgressions were overwhelmingly victimless.

Last Thursday, Westpac released two reports on the Austrac debacle: a management accountability review overseen by Promontory Financial Group, and a report on board governance by a three-member panel chaired by Ziggy Switkowski.

The probe blamed sins of omission and not of commission, estimating that 99.95 per cent or more of the missing international funds transfer instructions related to legitimate and uncontroversial transactions involving government pension payments et al.

Westpac, however, has suffered a heavy toll, with chairman Lindsay Maxsted bringing forward his retirement, chief executive Brian Hartzer losing his job, and non-executive director Ewen Crouch stepping down.
n addition, the bank has set aside $900m for a penalty. Austrac is seeking $1.5bn, more than double the penalty paid by Commonwealth Bank for similar AML breaches in 2017.

In contrast, the robodebt scandal, where the government will repay $721m after unlawfully using income averaging to raise 470,000 debts from welfare recipients, has not claimed one ministerial head or led to accountability measures.


It is kinda hard to argue the logic.
But as usual, it is one rule for the private sector, and another for the guvmint.
We are still to hear which of the mandarins from treasury and he ATO will be terminated after the debacle of the 60 billion overstatement of Job keeper.
But then again, you only have to look at the bull shit labour statistics to see that the standards for accuracy are pretty low the public service.

Mick



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mullokintyre
post Posted: May 23 2020, 10:10 PM
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Have the rates really hit bottom??
from The OZ
QUOTE
ANZ has hiked its interest rate on two-year fixed owner-occupier loans by 10 basis points to 2.29 per cent, marking the first major bank to increased fixed interest rates since the Reserve Banks emergency rate cuts on March 19

The move has prompted suggestions that longer term bank funding costs a key driver fixed rate pricing may be at or near the bottom of the cycle.

Since May 1, eight banks have increased rates on owner-occupied variable home loan products, while 20 lenders including non-banks increased two-year fixed rates, according to figures by mortgage research house RateCity

Theres no question were close to the bottom of the fixed rate market but some lenders could still potentially shave their rates further in a bid to get new customers in the door, RateCity research director Sally Tindall told The Weekend Australian.

ANZs increase brings it into line with two-year rates offered by NAB and Commonwealth Bank. While ANZ has made the first increase on fixed rates on its home loan portfolio, NAB has slashed its two-year fixed rate for interest only loan by 60 basis points to 2.79 per cent.

Westpac is offering the lowest two-year fixed principal and interest rate of the big four, at 2.19 per cent. The changes do not apply to variable mortgage rates which make up the bulk of ANZs home loan book.

Not sure if this is the bottom or not.
There is still the question as to whether RBA goes down the negative interest rates path.

Mick



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sent from my Olivetti Typewriter.
 
mullokintyre
post Posted: Apr 30 2020, 04:31 PM
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Got an email from NAb this morning with enormously generous offer t

QUOTE
We understand that it's a challenging time for many of our customers. That's why we're reducing credit card minimum monthly repayments to 0.5% of your closing balance or $5 (whichever is greater).
What happens next?
This change will happen automatically on statements issued from 27 April 2020 until at least 24 July 2020. If you have a direct debit set up to pay only your minimum monthly payment we'll automatically debit the reduced amount.

It's important that you have the option to pay less during this difficult time. Please keep in mind that paying more than the minimum monthly payment will help reduce the interest you pay.
Head to nab.com.au/creditcardrepayments for info on ways to set up or change your credit card repayments.


So, anyone who has a minimum automatic deduction will end up paying even more in interest unless they read the fine print.
No mention of a reduction in the appallingly high interest charges on the balance.
The bastards just don't seem to get it.
Do they really think people are going to think the bank is doing them a favour??

Mick



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nipper
post Posted: Mar 6 2020, 11:18 AM
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In Reply To: mullokintyre's post @ Mar 6 2020, 11:17 AM

Fractional banking.

9 for me and 1 for you.



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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
 
mullokintyre
post Posted: Mar 6 2020, 11:17 AM
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In Reply To: nipper's post @ Mar 6 2020, 09:08 AM

So Nip, whats the chance of us ever having a thread entitled “Banks behaving responsibly”?
Mick



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nipper
post Posted: Mar 6 2020, 09:08 AM
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This thread is Banks Behaving Badly and I can't see this ending well. An ADI guarantee for $250,000. !! I mean, really.

Talk about Socialising Losses

QUOTE
Xinja Bank, which received a banking licence just six months ago, said it has to stop taking new deposits just a day after kicking off a new funding round and crowing that funds flowing into its high-interest savings account had surged above $300 million.

The fintech neobank said it wanted to shield customers from ultra low interest rates as major banks sliced deposit rates in response to the Reserve Bank's emergency rate cut on Tuesday. It refused to cut the 2.25 per cent deposit rate it has used to lure customers into its accounts.

The government has encouraged the Australian Prudential Regulation Authority to allow neobanks - which have smartphone-based digital offerings and no branches - to enter the market to pressure the major banks. It is a core plank of the government's banking competition strategy after the Hayne royal commission.

But because Xinja has not started to lend yet - it plans to begin making personal loans in June - it cannot earn a "net interest margin". The net interest margin or NIM is the core driver of revenue for major banks and represents the difference between rates charged to borrowers and money paid to depositors.

"We have to limit deposits. We don't have a lending program yet. Obviously, as a new bank, we have to manage costs," said CEO Eric Wilson. "People are joining us so fast we have to control those costs."




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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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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.

 
 


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