Category: Banks

Business as usual for banks despite Frydenberg’s faux outrage and finger-wagging. – » The Australian Independent Media Network

Our nation sighs with relief this week. Our banks are safe. Federal Treasurer, former Minister for resources and Northern Australia, energy, environment, serial failure and currently unelected Prime Minister, Scott Morrison’s Deputy, Josh Frydenberg, will not get tough on financial companies just because a Royal Commission uncovers incompetence, theft, forgery, impersonation, fee-gouging, usury amongst other criminal conduct while regulators looked the other way.

“Getting stuck into banks could hurt the economy”, he warns. Ah, yes. The economy – that lonely little petunia which blossoms on the dung-heap of consumption. As Richard Denniss observes, Australians have been told for decades that as long as the amount of stuff bought is growing we must be doing well. Yet it’s clearly never been the case.

via Business as usual for banks despite Frydenberg’s faux outrage and finger-wagging. – » The Australian Independent Media Network

Wall Street bankers never punished for massive fraud leading to 2008 financial crisis — RT Business News

Wall Street bankers never punished for massive fraud leading to 2008 financial crisis

As the world marks the 10th anniversary of the worst financial crash in recent history, it’s worth looking into who was held responsible for knowingly issuing fraudulent mortgages that led to the crisis.

via Wall Street bankers never punished for massive fraud leading to 2008 financial crisis — RT Business News

CBA and AMP first targets in bank class action from Slater & Gordon

Two of Australia’s financial powerhouses face the threat of class actions for ripping off their superannuation clients.

Plaintiff law firm Slater & Gordon on Tuesday revealed it was seeking expressions of interest for a class action against financial institutions in the wake of damaging revelations about their treatment of customers.

via CBA and AMP first targets in bank class action from Slater & Gordon

CBA still in denial as fraudsters sentenced to a decade in jail

The Commonwealth Bank has spent seven years denying and covering up the role of its staff in a $76 million loan fraud that has left unwitting customers homeless.

via CBA still in denial as fraudsters sentenced to a decade in jail

Chart of the day: Australia pipped by Switzerland for debt world title – ABC News (Australian Broadcasting Corporation)

Australia may be rank outsiders to make the football World Cup final, but we are global finalists when it comes to household debt.

As things stand, it would take a year and 79 days of Australia’s total economic output to pay off what we owe — and that doesn’t include the interest we’re accruing. That’s more than twice as much household debt as Greeks have.

Only the Swiss are more indebted and, while we may not beat them on the football field, we’ve now got the Danes licked for household debt.

With so much debt, Australians also have high repayments, averaging 15.5 per cent of incomes, second only to the Dutch at 16.6.

via Chart of the day: Australia pipped by Switzerland for debt world title – ABC News (Australian Broadcasting Corporation)

Decrying Defaulted Loans of Deadbeat Corporations, One Million Indian Bank Workers Hold 48-Hour Strike

bank strike

Rejecting banks’ excuses for paltry raise proposal, union leaders say ordinary employees shouldn’t have to pay to price for bad loans

Decrying Defaulted Loans of Deadbeat Corporations, One Million Indian Bank Workers Hold 48-Hour Strike

Millionaires’ factory churns out the $10m-plus pay packets

Ben Brazil of Macquarie Bank does not want any family money.

Macquarie’s top 10 executives collectively received $119.4 million, which puts even the CEO pay packets at the Big Four banks to shame. This will be the case for some time if the banking royal commission is anything to go by.

You think the 4 Banks overpay their Execs. Coupled with millions in payments we each and every Australian citizen guaranteed that they wouldn’t go broke. Tell me why there wouldn’t be a high risk culture that believes it’s untouchable? The sharehoders might be able to move the who sits in the boardroom chairs but they haven’t managed to change the operational culture which has simply become Wall St (ODT)

Millionaires’ factory churns out the $10m-plus pay packets

Dirty little secrets: why banks need to be more transparent

Austrac may or may not have given CBA assurances that it would warn it ahead of any action but it is consistent with what we know of the banks and their regulators that they expect to be forewarned of any regulatory action and they expect to be given – and almost always are given – the ability to negotiate an out-of-court settlement on any issue of substance.

via Dirty little secrets: why banks need to be more transparent

Banking royal commission: Regulators should be sacked, Abbott

From the man who can’t keep his mouth shut, Abbott’s advice

The Abbott government’s 2014 budget set in motion $120 million of cuts to ASIC’s funding over four years, leading to the loss of more than 200 staff. At the time, the government emphasised a greater role for self-regulation instead of government intervention.

Former ASIC chair Greg Medcraft was vocal in his criticism of the budget cuts and pushing for tougher penalties for misconduct.
Former prime minister Tony Abbott.

In 2016, the Turnbull government restored the funding and boosted the regulator’s investigative powers.

via Banking royal commission: Regulators should be sacked, Abbott

African Gangs Makes Melburnians Afraid To Go Out, But AMP And The Banks Make People Unsafe In Their Houses – » The Australian Independent Media Network

The Liberals were right. There’s no need for a banking Royal Commission. It’s just fostering ill will and leading to a lot of complaints from people. Ok, not perhaps, the dead clients that the Commonwealth Bank continued to charge for advice even though they knew that they’d died. Let’s be real here, people. Dead people aren’t in the best position to make their own decisions so they probably needed the advice more than anyone. I have it from a source that in many cases the advice was: “You should stop paying me now that you’re dead.” Not one of these dead clients are complaining that the advice was wrong, even if it wasn’t heeded.

Yep…

via African Gangs Makes Melburnians Afraid To Go Out, But AMP And The Banks Make People Unsafe In Their Houses – » The Australian Independent Media Network

Bankers for a gangster: Commonwealth lenders help mafia boss do laundry

 

“I’ll organise it with the banker,” Arico was recorded telling his mate. “You come in the Commonwealth Bank, we see Hasan* the bank f—ing guy, give your details, sign the documents, to go for the loan and let me worry about it.”

“Even better … We go and see Peter*… [he] is a hundred percent. This guy is the best … and whatever he’ll need to do, he’ll do.”
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via Bankers for a gangster: Commonwealth lenders help mafia boss do laundry

Nurse’s $3 million in loans raises questions about banks’ lending practices – ABC News (Australian Broadcasting Corporation)

Perth nurse Linda Schmidt sitting at her desk in front of a mound of paperwork

At 71, Linda Schmidt should be enjoying retirement.

But for the past two years the Perth nurse has been crippled by debt, and fighting the banks.

“I just survive from day to day, black dog trotting around behind me,” she told 7.30.

She owes more than $3 million to half a dozen lenders.

The loans cover her own home and, not one but 11, investment properties.

Her superannuation has plummeted from more than $500,000 in 2012 to just $540.

Now she is faced with the prospect of losing her home.

Growing mortgage stress has led to consumer advocates calling for the banking royal commission, which meets for public hearings in Melbourne tomorrow, to examine irresponsible mortgage lending and the way banks assess whether loans are affordable.
‘I feel like a punchbag’: Schmidt

via Nurse’s $3 million in loans raises questions about banks’ lending practices – ABC News (Australian Broadcasting Corporation)

A focus on responsible lending will uncover huge problems for the banks – Analysis & Opinion – ABC News (Australian Broadcasting Corporation)

Key points:

42 per cent of home loan customers told banks they had incomes in excess of $500,000 last year
Westpac is the first bank to face ASIC court action over irresponsible lending allegations
Mortgage contracts can be voided if the bank provides credit to someone who cannot afford it

via A focus on responsible lending will uncover huge problems for the banks – Analysis & Opinion – ABC News (Australian Broadcasting Corporation)

Landmark inquiry finds Australia’s banks are exploiting their most loyal customers

Australia's major banks are about to face a royal commission.

Remember when banks provided a service and didn’t just service the customers?

Well that’s when they were reminded it was a free market and the governments got out of the banking business (old dog}

via Landmark inquiry finds Australia’s banks are exploiting their most loyal customers

Commonwealth Bank in damage control over anti-money laundering allegations – ABC News (Australian Broadcasting Corporation)

The Commonwealth Bank is locked in the early stages of damage control as it confronts allegations it allegedly breached anti-money laundering rules.

Source: Commonwealth Bank in damage control over anti-money laundering allegations – ABC News (Australian Broadcasting Corporation)

Big four banks slash lending to coal miners

Market Forces conducted a detailed survey of the big four banks’ project finance – lending to a specific mine or project, rather than a corporation – since the big four supported the Paris agreement to limit global warming to no more than 2 degrees.

Source: Big four banks slash lending to coal miners

‘Spectacular Betrayal’ as Trump Rolls Back Wall Street Regulations – Truthdig| They created the GFC| Ponzi is back through the front door.

The president is set to scale back the 2010 Dodd-Frank financial-overhaul law and roll back an Obama-era financial regulation.

Source: ‘Spectacular Betrayal’ as Trump Rolls Back Wall Street Regulations – Truthdig

First home buyer loses deposit after NAB backflip over apartment size| How many others bought off the plan?

A first home buyer has lost a $41,000 deposit on a St Kilda apartment after the National Australia Bank walked away from the loan at the last minute due to the property’s size.

Source: First home buyer loses deposit after NAB backflip over apartment size

Customer can’t walk or talk, but Westpac bans him as staff ‘fear abuse’

Wheelchair-bound Brandon Tomlin has lodged a complaint with the Human Rights Commission over his treatment at the hands of Westpac Bank, which has banned him from all its branches.

Source: Customer can’t walk or talk, but Westpac bans him as staff ‘fear abuse’

Timeline: banking scandals in Australia since 2009 | Australia news | The Guardian| LNP says Unions are the problem and banks need deregulating

Labor is pushing for a banking royal commission, while the Coalition has promised increased funding to Asic. Here, we’ve collated some of the scandals in the banking and financial sector over the past seven years

Source: Timeline: banking scandals in Australia since 2009 | Australia news | The Guardian

Investment bankers and venture capitalists – » The Australian Independent Media Network

What do PM Malcolm Turnbull, Premier Mike Baird, and NZ’s PM John Key have in common? They were all investment bankers – for Goldman Sachs, Deutsche Bank and Merrill Lynch respectively. Like Costello, and Hockey with Medibank Private, Baird and Key have both been able to sweet talk their constituents into selling off billions of…

Source: Investment bankers and venture capitalists – » The Australian Independent Media Network

Is the royal commission promise a political winner? You can bank on it – The Drum (Australian Broadcasting Corporation)

Is there any antipathy greater than that we reserve for the banks? It’s true today as it has always been. And now, for normal punters, banks have become a law unto themselves. That’s why they’re backing a royal commission to the hilt.

Source: Is the royal commission promise a political winner? You can bank on it – The Drum (Australian Broadcasting Corporation)

No wonder we hate the banks – The Drum (Australian Broadcasting Corporation)

Our financial and corporate regulatory system manages to be both bad for the economy and for public transparency. And neither the Government nor the Opposition has a plan that will likely resolve it.

Source: No wonder we hate the banks – The Drum (Australian Broadcasting Corporation)