BANKS AND BANKING – AUSTRALIA

Analysts urge Westpac to close 200 branches

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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

Bank repossesses bikie clubhouse

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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

Banks settle case with liquidators of ABC

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Original article by Michael Bennet
The Australian – Page: 21 : 8-Jul-14

The liquidators of ABC Learning Centres have reached an in-principle settlement with a syndicate of banks. The compromise was reached just before the case against the lenders was to be heard in the Federal Court of Australia. Bentham IMF was meant to argue that the banks "jumped the creditors’ queue". Child care facilities operator ABC Learning Centres collapsed in November 2008, with debts of $A1.6 billion

CORPORATES
BENTHAM IMF LIMITED – ASX IMF, ABC LEARNING CENTRES LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FEDERAL COURT OF AUSTRALIA

CBA exposed to flood of claims

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Original article by James Eyers, Phillip Coorey
The Australian Financial Review – Page: 1-Jun : 4-Jul-14

Commonwealth Bank of Australia (CBA) has announced a new compensation program. CEO Ian Narev said on 3 July 2014 that the bank is determined to rectify the problem of inappropriate advice being given to clients by the bank’s financial planning subsidiaries. Under the new program, customers who received advice between 1 September 2003 and 1 July 2012 can apply to the bank for an internal assessment

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, MAURICE BLACKBURN PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED

China offers chance to take stake in banks

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Original article by Angus Grigg, Lisa Murray
The Australian Financial Review – Page: 8 : 30-Jun-14

China is offering Australian banks the opportunity to invest in its five largest banks. During a visit to China in late June 2014, Federal Treasurer Joe Hockey was informed that the Chinese Government planned to further sell down its holdings in the five lenders. They are Industrial & Commercial Bank of China, Bank of China, Bank of Communications, China Construction Bank and Agricultural Bank of China

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, INDUSTRIAL AND COMMERCIAL BANK OF CHINA, BANK OF CHINA GROUP, BANK OF COMMUNICATIONS, CHINA CONSTRUCTION BANK, AGRICULTURAL BANK OF CHINA, CHINA. NATIONAL DEVELOPMENT REFORM COMMISSION, CHINA. MINISTRY OF FINANCE, THE GOLDMAN SACHS GROUP INCORPORATED, PEKING UNIVERSITY, CHINA CENTRE FOR ECONOMIC RESEARCH, UBS AG, ROYAL BANK OF SCOTLAND GROUP PLC, CITIGROUP INCORPORATED, BANK OF AMERICA CORPORATION, KING AND WOOD MALLESONS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CHINA BANKING REGULATORY COMMISSION

CBA rip-off no setback to lighter rules

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Original article by Patrick Durkin, Jonathan Shapiro
The Australian Financial Review – Page: 3 : 30-Jun-14

The Commonwealth Bank of Australia scandal will not deter the Federal Government from its plan to lighten regulation of the financial planning sector. Federal Finance Minister Mathias Cormann said that regulation should be dropped if it increases the cost of financial advice without increasing consumer protection. However, Industry Super Australia CEO David Whiteley argued the matter shows that the Government should abandon its plan to change the Future of Financial Advice laws

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF FINANCE, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MAURICE BLACKBURN PTY LTD

CommBank covered up scandal

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: Jan-45 : 27-Jun-14

A Senate report is critical of Commonwealth Bank of Australia and the Australian Securities & Investments Commission (ASIC). The findings by the Senate economics committee were tabled on 26 June 2014. The report called for a royal commission, saying that the bank tried to avoid investigation of its financial planning subsidiary. The regulator was criticised for its slow action on the issue. The report made 61 recommendations for ASIC and the financial planning industry

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Nimble start-up challenges the big four

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Original article by Damon Kitney
The Australian – Page: 21 : 26-Jun-14

Technology company Nimble has raised $A10 million in new funding from Acorn Capital and Monash Investors. It specialises in providing small personal loans to creditworthy borrowers. It uses data analytics to reduce approval times. Australia’s big four banks are now under competitive pressure from small companies that use new technology to offer services such as payments, short-term lending, and peer-to-peer lending

CORPORATES
NIMBLE PTY LTD, ISELECT LIMITED – ASX ISU, ACORN CAPITAL INVESTMENT FUND LIMITED – ASX ACQ, MONASH INVESTORS PTY LTD, SEEK LIMITED – ASX SEK, SQUARE PEG CAPITAL PTY LTD, FACEBOOK INCORPORATED, SOCIETYONE AUSTRALIA PTY LTD, REINVENTURE GROUP PTY LTD

NAB’s UK exit plan buoyed by TSB surge

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Original article by Richard Gluyas
The Australian – Page: 21 : 23-Jun-14

Lloyds Banking in the UK has successfully hived off its TSB business, which now has a market capitalisation of Stg1.3bn ($A2.35bn). The issue price per share was Stg2.60, but on the listing date of 20 June 2014 the stock closed at $A2.90. Lloyds also said that the initial public offering was 10 times oversubscribed. The news is a boost to the plans of National Australia Bank for selling off its under-performing Clydesdale Bank assets in the UK. Clydesdale has achieved a turnaround as well, to record a March 2013 half-year profit after problem debts declined

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, TSB GROUP PLC, LLOYDS BANKING GROUP PLC, BANK OF ENGLAND, GRUPO SANTANDER, VIRGIN MONEY LIMITED, VIRGIN MONEY PERSONAL FINANCE SERVICE LIMITED, ALDERMORE BANK PLC, SHAWBROOK BANK LIMITED

Banks still protected from start-ups

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Original article by Shaun Drummond
The Australian Financial Review – Page: 23 : 6/19/2014

Banks have spent billions on technology, but they are still vulnerable to competition from start-ups in the field of new banking technologies. The issue was discussed at a forum held in Sydney on 17 June 2014. Paul Bassat, co-founder of SEEK and Square Peg Capital, said that start-ups were particularly active in developing new technologies that facilitate payments and peer-to-peer lending. The position of banks is however so strong that disruption in the banking sector is not an immediate issue

CORPORATES
SEEK LIMITED – ASX SEK, SQUARE PEG CAPITAL PTY LTD, ATLASSIAN SOFTWARE SYSTEMS PTY LTD, MACQUARIE BANK LIMITED – ASX MBL, KOGAN TECHNOLOGIES PTY LTD, GOOGLE INCORPORATED, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, PAYPAL INCORPORATED, TYRO PAYMENTS