Banking & Finance

 

P2P loans tipped to hit $22b in Australia by 2020

James Eyers 10:03 PM   The value of loans made through peer-to-peer lending platforms in Australia will surge to $22 billion in the next five years, says investment bank Morgan Stanley, forcing the big banks to speed up investment in new technology. 

A $7m loss is a good year, Morgan Stanley Australia says

Richard Wagner, Morgan Stanley Australia's head of investment banking oversaw a $7 million after-tax loss for 2014.

Shaun Drummond 5:19 PM   Morgan Stanley's Australian investment bank has slashed its after-tax loss for 2014 by $30 million to just more than $7 million, after its advisory fee income rose by $26 million.

Macquarie joins clampdown on property investors

The flurry of activity in the booming investor lending market is a response to the Australian Prudential Regulation Authority (APRA) demanding investor lending growth slow to no more than 10 per cent a year, from 10.4 per cent today.

Clancy Yeates 4:55 PM   Macquarie Group has joined the growing number of banks charging property investors higher interest rates, as it faces pressure to curb a rapid expansion in home lending.

IAG makes first foray into Indonesia

IAG's CEO Mike Wilkins: 'a first step' into Indonesia.

Ruth Liew 4:49 PM   Insurance Australia Group has bought a stake in Indonesian insurer, PT Asuransi Parolamas – making it the insurance giant's sixth purchase in Asia as it continues to expand in the region.

Mortgage broker AFG wobbles on ASX debut

Mortgage broker Australian Finance Group made its sharemarket debut on Friday with a market cap of $258 million.

Sally Rose 4:24 PM   Australia's biggest mortgage broking business, Australian Finance Group, bounced back after making its sharemarket debut at a slight discount amid mounting expectations the banks will be forced to tighten property lending standards.

Leaner Investec looks to fatten up on property and planes

Investec Australia chief executive Milton Samios with Investec Group CEO Stephen Kosoff.

Shaun Drummond 9:32 AM   Investec's remaining Australian business has quietly built up a $2 billion aviation fund and a $100 million joint venture private equity business.

Fundies put bank stocks boom on last legs

Ausbil's Paul Xiradis says further falls in the iron ore price may send Fortescue Metals out of business.

Rose Powell 8:48 AM   Two of Australia's highest performing fund managers have warned investors that the good times for the big banking stocks are coming to an end.

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Clock ticking on Deutsche chief's mandate for turnaround

An engaging conversationalist in private, Anshu Jain's inability to speak German means he often appears awkward at shareholder events dominated by small and sometimes vociferous investors.

8:37 AM   Deutsche Bank has given more power to co-CEO Anshu Jain to shake up the company, but investors aren't happy.

Banks crimp investor housing

Banks are reining in loans to property investors to prevent the housing market overheating. <i>Illustration: Judy Green</i>

Clancy Yeates and James Eyers 1:57 AM   Banks are taking immediate steps to slow the rapid growth in lending to property investors, in response to action by regulators to prevent the housing market from overheating.

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NAB to open branch in Beijing

National Australia Bank is set to open a branch in Beijing later this year.

James Eyers   National Australia Bank will open a branch in Beijing, its second in China, after receiving approval from the China Banking Regulatory Commission in a move NAB says will support its Asian strategy to support Australian companies doing business in the region.

Rate rigging makes felons of top banks

Wall Street's foreign exchange traders created online chat rooms called "the cartel" and "the mafia".

Michael Corkery and Ben Protess 12:15 AM   Citigroup​, JPMorgan Chase, Barclays and Royal Bank of Scotland have pleaded guilty to crimes over a scheme to manipulate the value of the world's currencies.

Funding risk for Rio's Oyu Tolgoi

Turquoise Hill Resources, which is majority-owned by Rio Tinto, controls 66 per cent of the Oyu Tolgoi project.

Peter Ker   Australia's export credit agency says it will only revive its pledge to fund Rio Tinto's copper project in Mongolia if Australian businesses win work on the project.

Fraud mastermind Revell-Reade banned from work in Australia

Jeffrey Revell-Reade outside his Darling Point home at the time the British crime investigation was revealed in 2010.

Sarah Danckert and Miriam Steffens   An Australian found guilty of masterminding a £70 million ($138 million) fraud in Britain has been banned from working again as a financial adviser in his home market.

Global banks admit guilt in forex probe, fined nearly $US6 bln

US Attorney General Loretta Lynch announces a resolution has been reached with global financial institutions in connection with long-running manipulation of the $US5 trillion-a-day Foreign Exchange spot market.

Karen Freifeld, David Henry and Steve Slater   Four major banks have pleaded guilty to trying to manipulate foreign exchange rates and, with two others, were fined nearly $US6 billion in another settlement.

Bankwest clamps down on lending to property investors

BankWest CEO Rob de Luca. The CBA subsidiary has imposed a loan-to-valuation ratio cap on investor mortgages of 80 per cent.

James Eyers   CBA subsidiary Bankwest has sought to curb the rapid growth in lending to property investors, which has been boosting bank profits but also exacerbating overheating housing markets.

'If you aint cheating, you aint trying': the chats behind $US6b in fines

Barclays FX traders would calculate how much they could rip off their clients without arousing suspicion.

These are some of the FX trader chats that earned six of the world's biggest banks $US5.6 billion in fines.

Boards have lost 'mojo' and are shrinking ASX

Citigroup head of corporate and investment banking Tony Osmond wants Australian boards to have the courage to take risks.

Shaun Drummond   The ASX is in danger of becoming a specialist exchange with decreasing liquidity, says Citi banker Tony Osmond.

Actor Peter Phelps loses superannuation in Wickham Securities saga

Actor Peter Phelps.

Marissa Calligeros   The Australian actor says his financial future is in ruins after falling victim to disgraced Queensland fund manager Brad Sherwin.

Small business set for tougher credit rules

Bruce Billson says there remains room for improvement to give the small-business sector better access to funding.

Clancy Yeates   Small Business Minister Bruce Billson is pushing ahead to extend unfair contract laws to cover small-business customers, despite bank threats the move will push up borrowing costs.

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Five big banks face criminal charges and $6b fine over currency rigging

JPMorgan is one of the banks expected to plead guilty to criminal charges.

Five of the world's biggest banks are expected to be hit with a combined bill of more than $US5 billion and criminal charges in a settlement with US and British authorities over rigging of currency markets.

NAB appoints UNSW law professor to advise customers on complaints

NAB customers complaining about the bank will be helped by a law professor.

James Eyers   National Australia Bank will provide aggrieved customers with access to a highly-respected law professor to shepherd their complaints through the bank, following revelations it had quietly paid $14.5 million over the past five years to more than 750 customers who got bad advice from its wealth division.

Stressed, sick workers produce $1b in claims

TAL, which counts some of Australia's biggest super funds such as AustralianSuper among its clients, paid more than $1.03 billion, or $4.1 million each working day, to customers.

Ruth Liew   A rising army of stressed and sick white-collar workers is hitting Australian insurers, with the biggest life insurer, TAL, forking out $4 million a day in claims.

Rate cutting banks move to lock savers in long term

Interest rates on savings were this month cut by more than those on home loans.

Clancy Yeates   Banks are trying to woo savers by offering better rates on some longer-term loans.

AMP Capital boss to retire

Stephen Dunne will retire after more than a decade as AMP Capital chief executive.

Ruth Liew   Stephen Dunne is retiring from AMP Capital after more than a decade as chief executive of the funds management group. 

OzForex picks former ANZ banker as CEO

New OzForex CEO Richard Kimber was formerly chief operating officer of an ANZ Bank investment arm, ANZ Global Markets.

Shaun Drummond   Investors welcomed the appointment of former ANZ Banking Group executive Richard Kimber as chief executive of online money transfer company OzForex, replacing Neil Helm who led the company to its $480 million initial public offering in 2013.

Smaller lenders chase big banks' data

Rivals are trying to pry information from banks to boost competition.

James Eyers   The big four banks and Macquarie face calls from smaller rivals for them to share data on market risk and customer credit history in an attempt to increase competition in lending.

Owner-occupiers may get cheaper loans due to APRA cap

House built on cash

Clancy Yeates   New lending rules could mean bigger interest rate discounts for borrowers who live in the home they are borrowing against.

Regional banks outperform big four

Bendigo Bank.

Stephen Cauchi   Regional banks Bendigo Bank and Bank of Queensland have outperformed the big four banks over the past year, according to Macquarie.

Qantas rails against call to cap credit card surcharges

Qantas has a fuel surcharge of $570 on a return economy ticket from Australia to London and $1080 for business class.

Shaun Drummond   Qantas has lashed out at the Murray financial system inquiry's proposals to cut fees paid to card issuers and cap surcharges to customers on credit cards.

Life insurance price rises tipped to ease

The steep rises in life insurance premiums sold through super funds are expected to ease this year.

Ruth Liew   The steep rises in life insurance premiums sold through super funds are expected to ease this year, despite ongoing challenges affecting the profits of embattled life companies.