GOVERNMENTAL INVESTIGATIONS – AUSTRALIA

Majors facing $23bn ‘too big to fail’ slug

roymorgansocial Leave a comment

Original article by Michael Bennet
The Australian – Page: 19 : 18-Jul-14

The interim report by the inquiry into Australia’s financial system has proposed stricter capital requirements for banks that are deemed to be "systemically important". The four major banks will have to lift their tier-one capital holdings to eight per cent from 2016. Jonathan Mott of UBS says that lifting the capital ratio above 10 per cent would require banks to increase their common equity tier one capital by around $A23bn

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, ARNHEM INVESTMENT MANAGEMENT PTY LTD, DEUTSCHE BANK AG

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

roymorgansocial 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)

‘Blackmail’ worked, says Boral

roymorgansocial Leave a comment

Original article by Lucille Keen
The Australian Financial Review – Page: 1 & 8 : 10-Jul-14

Concrete supplier Boral has accused the Construction, Forestry, Mining & Energy Union of blackmail. On 9 July 2014, Boral CEO Mike Kane told the Royal Commission Into Trade Union Governance & Corruption that the union threatened contractors and created a cartel on Melbourne building sites. He said that the criminal conspiracy was effective, with Boral’s profits falling by nearly $A6 million since the boycott was launched. Kane said that he expects the inquiry to refer his allegations to Victoria Police

CORPORATES
BORAL LIMITED – ASX BLD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, VICTORIA POLICE, GROCON PTY LTD, SUPREME COURT OF VICTORIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, TRANSPORT WORKERS’ UNION

CommBank covered up scandal

roymorgansocial Leave a comment

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