K62 Finance

NAB faces $4.3m harassment suit

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Original article by Leo Shanahan
The Australian – Page: 17 : 24-Sep-14

National Australia Bank has declined to comment on a pending claim for damages by a former executive of its JBWere wealth management business. Antonia Thornton alleges in her statement of claim that she was subject to discrimination and harassment after revealing in 2009 that she was pregnant. Thornton also alleges that she was effectively forced to resign, as the discrimination continued after she returned from maternity leave

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, JBWERE LIMITED, FEDERAL COURT OF AUSTRALIA, GOLDMAN SACHS AUSTRALIA PTY LTD

NAB pitches $1.7b US bank ahead of major sell-down

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Original article by John Kehoe
The Australian Financial Review – Page: 13 : 22-Sep-14

National Australia Bank (NAB) is believed to be planning a partial IPO of US-based Great Western Bank, which it acquired in 2007. The banking major will retain a stake of around 70 per cent, which is expected to be divested during the 12 months following the IPO. NAB will hold a roadshow for US investors in October 2014, and there are expectations that it could gain around $US1.5bn ($A1.7bn) in total from the sale of Great Western

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, GREAT WESTERN BANK, NEW YORK STOCK EXCHANGE, HOMESIDE LENDING INCORPORATED, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, DEUTSCHE BANK AG, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, ROYAL BANK OF SCOTLAND GROUP PLC, CITIZENS FINANCIAL GROUP INCORPORATED

Deutsche fires rogue forex trader

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 13 & 20 : 22-Sep-14

The Australian Securities & Investments Commission and the Australian Prudential Regulation Authority will look into the actions of a "rogue" foreign exchange trader. Deutsche Bank dismissed Andy Donaldson in June 2014 after he was found to have been overstating foreign exchange trades, resulting in large losses for his employer. There have been similar scandals at Deutsche’s international operations

CORPORATES
DEUTSCHE BANK AG, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BARCLAYS BANK PLC, THE GOLDMAN SACHS GROUP INCORPORATED, ROYAL BANK OF SCOTLAND GROUP PLC, UBS AG

‘Heretic’ flags break-up of Australia’s big four banks

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Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 17 : 19-Sep-14

Investment banker Alastair Walton has warned that Australia’s four major banks will be vulnerable in the event of another financial crisis. He says that rather than imposing stricter capital requirements, it may be better to look at forcing the "AA-"-rated banks to demerge and be broken up into 8-10 smaller banks with "A" credit ratings. The BKK Partners chairman notes that the four major banks rate among the 20 biggest in the world

CORPORATES
BKK PARTNERS PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIA. COUNCIL OF FINANCIAL REGULATORS, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN BANKERS’ ASSOCIATION

Aussie dollar under threat as US Fed talks rate rise

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 36 : 19-Sep-14

The US Federal Open Market Committee has signalled that interest rates are likely to rise by the end of 2015. This prompted renewed support for the US dollar on 18 September 2014, while the yield on US 10-year bonds increased to 2.61 per cent and the Australian dollar reached a six-month low of $US0.8938. The Australian dollar is likely to come under further selling pressure when the US does begin tightening monetary policy

CORPORATES
UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, DELTEC INTERNATIONAL GROUP, GROUP OF TWENTY (G-20), RESERVE BANK OF AUSTRALIA, PEOPLE’S BANK OF CHINA, BANK OF ENGLAND, FINANCIAL STABILITY BOARD, INTERNATIONAL MONETARY FUND, TRILOGY GLOBAL ADVISORS LLC, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIA. DEPT OF THE TREASURY, BANK OF JAPAN, EUROPEAN CENTRAL BANK, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, CNBC, PNC ASSET MANAGEMENT, BOSTON ADVISORS LLC

Banks set to dodge ‘bail-in’ measures

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Original article by Clancy Yeates, Jonathan Shapiro
The Australian Financial Review – Page: 24 : 18-Sep-14

The Australian Government is likely to reject a "bail-in" regime for large banks. The proposed rule for the largest 29 banks would bail in some bondholders if a bank collapsed, rather than using taxpayer funds. Australian Prudential Regulation Authority Wayne Byres said that there were practical difficulties in introducing a bail-in regime. Moody’s Investors Service said that the regime could reduce access to funding. However, Australia’s membership of the Financial Stability Board may force it to accept the regime

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MOODY’S INVESTORS SERVICE INCORPORATED, FINANCIAL STABILITY BOARD, GROUP OF TWENTY (G-20), COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Anchorage Capital reaps big from Dick Smith sellout

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Original article by Eli Greenblat
The Age – Page: 21 : 16-Sep-14

Anchorage Capital will make almost $A370 million from its investment in consumer electronics business Dick Smith. The private equity firm bought the struggling business for $A94 million in September 2012. It was floated in December 2013, giving Anchorage a profit of $A264 million. In mid-September 2014, Anchorage sold its remaining 20 per cent stake at $A2.22 a share

CORPORATES
DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, MACQUARIE CAPITAL PTY LTD, WOOLWORTHS LIMITED – ASX WOW

Lower $A ‘a wake-up call’

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Original article by Bianca Hartge-Hazelman, Jonathan Shapiro
The Australian Financial Review – Page: 29 : 15-Sep-14

The Australian dollar was heavily sold down in the week ended 13 September 2014. The currency was trading at $US0.904, and Aitken Advisors’ James Aitken says it needs to fall much further in order to benefit the economy. He suggests that an appropriate level for the currency may be around $US0.80, while Warren Hogan of the ANZ Bank forecasts that it will fall to $US0.88 by the end of the year

CORPORATES
AITKEN ADVISORS LLP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, QIC LIMITED, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE

$A correction ‘overdue’

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Original article by Mark Mulligan, Jonathan Shapiro
The Australian Financial Review – Page: 29 : 11-Sep-14

The Australian dollar was sold down on 10 September 2014, reaching an intra-day low of $US0.9130. The currency had not fallen below $US0.92 since March, and the sell-down was prompted by factors such as growing expectations that interest rates in the US will be increased sooner rather than later. David Bassanese of BetaShares says a correction in the value of the dollar would have occurred earlier if interest rates had not been slashed in Europe and Japan recently

CORPORATES
BETASHARES CAPITAL LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, CREDIT SUISSE (AUSTRALIA) LIMITED, BANK OF ENGLAND, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, RESERVE BANK OF AUSTRALIA, ABERDEEN ASSET MANAGEMENT LIMITED

$A correction ‘overdue’

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Original article by Mark Mulligan, Jonathan Shapiro
The Australian Financial Review – Page: 29 : 11-Sep-14

The Australian dollar was sold down on 10 September 2014, reaching an intra-day low of $US0.9130. The currency had not fallen below $US0.92 since March, and the sell-down was prompted by factors such as growing expectations that interest rates in the US will be increased sooner rather than later. David Bassanese of BetaShares says a correction in the value of the dollar would have occurred earlier if interest rates had not been slashed in Europe and Japan recently

CORPORATES
BETASHARES CAPITAL LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, CREDIT SUISSE (AUSTRALIA) LIMITED, BANK OF ENGLAND, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, RESERVE BANK OF AUSTRALIA, ABERDEEN ASSET MANAGEMENT LIMITED