Interest rates set to remain at record lows

July 17, 2014roymorgansocial Leave a comment

Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 27 : 17-Jul-14

The general consensus of economists polled by Bloomberg is that Australia’s cash rate will rise in the first half of 2015, although the financial market has priced in a better-than-even chance of a rate cut by the end of 2014. Tim Toohey of Goldman Sachs is also bucking the trend, and believes that the Reserve Bank could potentially reduce the cash rate again by September. The central bank itself has retained a neutral bias on monetary policy

CORPORATES
GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA, DEUTSCHE BANK AG, BLOOMBERG LP, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AMP CAPITAL INVESTORS LIMITED, AMP LIMITED – ASX AMP

Time for discussion over the meaning of ‘too big to fail’

July 16, 2014roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 10 : 16-Jul-14

David Murray, head of the new financial system review for the Australian Government, has raised the issue of banks being deemed "too big to fail". He noted that the "moral hazard" created by the Government guaranteeing deposits should be addressed, and that one solution could be to lift the fees charged to the banks in return for the support. The Australian Bankers’ Association concedes that a debate on the issue is needed, while the Customer Owned Banking Association believes Murray should have gone even further

CORPORATES
MACQUARIE BANK LIMITED – ASX MBL, AUSTRALIAN BANKERS’ ASSOCIATION, CUSTOMER OWNED BANKING ASSOCIATION, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, NATIONAL PRESS CLUB (AUSTRALIA), GROUP OF TWENTY (G-20)

Coles to play banks at own game

July 15, 2014roymorgansocial Leave a comment

Original article by Jared Lynch
The Australian Financial Review – Page: 19 : 15-Jul-14

Coles will expand its product offerings in the financial services sector, with the introduction of personal loans. The grocery retailer expects to receive regulatory approval by the end of 2014, but Coles Finance director Rob Scott has declined to comment on the possibility that Coles could also seek a banking licence. The new products will be offered in partnership with GE Capital

CORPORATES
COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, GE CAPITAL AUSTRALIA, TESCO PLC, J SAINSBURY PLC, MARKS AND SPENCER PLC, MASTERCARD AUSTRALIA LIMITED, VISA INTERNATIONAL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

The $2500 house deposit; high-risk mortgages return

July 14, 2014roymorgansocial Leave a comment

Original article by Nick Lenaghan
The Australian Financial Review – Page: 1 & 6 : 14-Jul-14

The Australian Prudential Regulation Authority has made banks cut the number of mortgages they write that have high loan-to-valuation ratios (LVRs). However smaller and nonbank providers now offer LVRs of as high as 99.375%, causing concern about a situation similar to the sub-prime mortgages crisis in the US in 2007. A new joint venture by home construction businesses BGC and Metricon even advises buyers to rely both on the first-home owners’ grant and a personal loan to raise a 5% deposit, with as little as $A2,500 of their own money. Meanwhile residential real estate prices have risen some 10% during 2013-14

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BGC (AUSTRALIA) PTY LTD, METRICON HOMES, HIVE EMPIRE PTY LTD, DIGITAL FINANCE ANALYTICS, RP DATA LIMITED, CORELOGIC AUSTRALIA PTY LTD, RISMARK INTERNATIONAL PTY LTD, RESERVE BANK OF AUSTRALIA, RAMS MORTGAGE CORPORATION LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, THE LOAN COMPANY, MOODY’S INVESTORS SERVICE INCORPORATED, BANK OF ENGLAND

CBA on track for planners: Norris

July 14, 2014roymorgansocial Leave a comment

Original article by Steve Creedy
The Australian – Page: 21 : 14-Jul-14

New Commonwealth Bank of Australia (CBA) CEO Ian Narev has issued an apology to customers affected by malpractice in its financial planning division between 2006 and 2010. The CEO at that time, Sir Ralph Norris, has now commented that he approves of Narev’s efforts in dealing with the scandal. It may cost the bank more than twice the $A52m already paid in compensation to the victims. CBA has also asked ex-High Court judge Ian Callinan to head a review of any further complaints. Sir Ralph says he was advised in 2010 that the matter was with the Australian Securities & Investments Commission

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH FINANCIAL PLANNING LIMITED

Analysts urge Westpac to close 200 branches

July 11, 2014roymorgansocial Leave a comment

Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 11-Jul-14

Westpac Banking could reduce costs by closing up to 200 branches. Analysts from JPMorgan said that Westpac generated a third less profit per branch than some competitors. They said that the St George branches, acquired in 2008, were a drain on the business. Closing 200 branches is estimated to save $A400 million a year. The analysts said that Westpac should reconsider its strategy of offering a number of brands

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, JP MORGAN AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF SOUTH AUSTRALIA LIMITED, BANK OF MELBOURNE LIMITED, RAMS HOME LOANS PTY LTD, BANK OF WESTERN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UBANK, STANDARD AND POOR’S (AUSTRALIA) PTY LTD

Bitcoin here to stay and ready for rules

July 11, 2014roymorgansocial Leave a comment

Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 11-Jul-14

Australian Digital Currency Commerce Association chairman delegate Ronald Tucker says the nation can be at the forefront of regulation for the Bitcoin digital currency. He has held talks on the issue with the Australian Taxation Office, Australian Securities & Investments Commission, Treasury and Reserve Bank of Australia. New businesses related to the trade in Bitcoins have attracted investment of $US300m-plus ($A310m) globally between early 2013 and mid-2014, and close to $A11m in Australia. They include the backdoor-listed Digital CC

CORPORATES
DIGITAL CC LIMITED – ASX DCC, AUSTRALIAN DIGITAL CURRENCY COMMERCE ASSOCIATION LIMITED, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, MTGOX, GREAT BRITAIN. HM REVENUE AND CUSTOMS, EUROPEAN BANKING AUTHORITY

Bank repossesses bikie clubhouse

July 10, 2014roymorgansocial Leave a comment

Original article by Chris Vedelago
The Age – Page: 12 : 10-Jul-14

A writ has been filed in the Supreme Court of Victoria by Commonwealth Bank of Australia, for the repossession of a property in London Drive, Bayswater. It is the clubhouse of the Immortals outlaw motorcycle gang, which has allegedly defaulted on $A117,000 worth of business loans at an interest rate of 8.3%-plus. The premises, searched by Victoria Police in 2013, house a licensed bar and are the venue of Immortals fund raising activities such as its annual Fancy Dress Schoolgirls Festival

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, IMMORTALS MOTORCYCLE CLUB, BANDIDOS MOTORCYCLE CLUB AUSTRALIA LIMITED, SUPREME COURT OF VICTORIA, VICTORIA POLICE

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