K: Financial and Insurance Services

Year’s gains lost in three weeks

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Original article by Philip Baker
The Australian Financial Review – Page: 1 & 11 : 23-Sep-14

The Australian sharemarket has shed more than five per cent so far in September 2014, paring the S&P/ASX 200’s gains in the year to date to just 0.2 per cent. In contrast, the S&P 500 has gained nearly nine per cent and the Hang Seng Index has risen by three per cent. Banks have borne the brunt of bearish investor sentiment, with all of the four major banks shedding more than the S&P/ASX 200 in September

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WILSON ASSET MANAGEMENT, STANDARD AND POOR’S 500 INDEX, HANG SENG INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, NIKKEI 225 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, MORGAN STANLEY AUSTRALIA LIMITED

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

Arrium plunge in wake of raising

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Original article by Matt Chambers, Barry FitzGerald
The Australian – Page: 19 : 19-Sep-14

The share price of steel and iron ore miner Arrium fell on 18 September 2014 after its capital raising. The company wanted to raise $A754 million. However, only 79 per cent of institutional shareholders participated, raising $A465 million. Arrium’s stock dropped by $A0.0165 to a record low of $A0.40

CORPORATES
ARRIUM LIMITED – ASX ARI, BHP BILLITON LIMITED – ASX BHP, ALLAN GRAY AUSTRALIA PTY LTD

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

‘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

ASX buys stake in e-trading provider

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Original article by Mitchell Bingemann
The Australian – Page: 23 : 19-Sep-14

The Australian Securities Exchange has paid $A65 million for a 49 per cent in Yieldbroker, a specialist electronic markets company. The acquisition will strengthen the ASX’s derivatives trading business. Twelve banks have invested in Yieldbroker, which was founded in 1999. It operates electronic markets for trading more than 800 Australian and New Zealand debt securities and interest rate derivatives

CORPORATES
ASX LIMITED – ASX ASX, YIELDBROKER PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CITI AUSTRALIA PTY LTD, DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ROYAL BANK OF CANADA, ROYAL BANK OF SCOTLAND GROUP PLC, TORONTO DOMINION AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC

UBS, Macquarie in box seat for analysis kudos

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Original article by Michael Bennet
The Australian – Page: 23 : 18-Sep-14

The annual East Coles equities markets awards will be held in Sydney on 18 September 2014. The best analysts and traders will be chosen by 79 institutional investors representing $A300 billion in domestic equities. UBS has received the most nominations, followed by Macquarie Group, Credit Suisse, Citi and Deutsche Bank

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, CITI AUSTRALIA PTY LTD, DEUTSCHE BANK AG, EAST COLES PTY LTD, CANACCORD GENUITY (AUSTRALIA) LIMITED, MORGANS FINANCIAL LIMITED, TAYLOR COLLISON LIMITED, EVANS AND PARTNERS PTY LTD, EUROZ LIMITED – ASX EZL, PETRA CAPITAL PTY LTD, CLSA AUSTRALIA PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, PETER LEE ASSOCIATES PTY LTD, STARMINE PTY LTD

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

Rush for exits belies optimism

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Original article by Vesna Poljak, Max Mason
The Australian Financial Review – Page: 17 & 24 : 17-Sep-14

Fund managers are cautious about the strong activity in the Australian sharemarket. In the third quarter of 2014, IPOs have reached a record $US2.4 billion. Private equity firms are also exiting as escrow periods expire. Debt capital market activity reached $US99 billion between 1 January and 15 September, while merger and acquisition deals are worth $US8.5 billion. Fund managers said that private equity firms are taking the opportunity to exit in a strong market, but investors may be becoming complacent

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, HEALTHSCOPE LIMITED – ASX HSO, VEDA GROUP LIMITED – ASX VED, DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, DEALOGIC (AUSTRALIA) PTY LTD, INVESTORS MUTUAL LIMITED, AUSBIL DEXIA LIMITED, WAVESTONE CAPITAL PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, GOLDMAN SACHS AUSTRALIA PTY LTD