BFCSA Blog

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

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Credit curbs and falling prices: New home sales fall 4.2pc in April Australian Financial Review Jun 6 2018 3:38 PM Michael Bleby   New home sales fell at their fastest rate in seven months in April as every mainland state suffered a decline, Housing Industry Association figures show. The 4.2 per cent decline in sales of new standalone houses, triggered mostly by falls in WA, NSW and Queensland, pulled the monthly total to 5188, the lowest since September, when a 4.5 per cent drop cut total sales to 5045, the industry association's latest monthly report showed on Wednesday. The effects of falling prices in Sydney and Melbourne – which prompted investors to put their money into alternative assets – and tighter credit curbs over the past year were now also at risk of being reinforced by the royal commission into bank lending and other practices, HIA principal economist Tim Reardon said....
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Scott Morrison says regulators are ‘no light touch’ The Australian 10:16am June 6, 2018 Remy Varga   Treasurer Scott Morrison has downplayed the role of the royal commission and said the “very focused, very determined” government regulators are already addressing issues within the banking and financial sector. Six of Australia’s most powerful investment bankers were charged over alleged cartel conduct yesterday following an investigation by the competition watchdog. The charges came a day after Austrac hit the Commonwealth Bank with a record $700 million fine. The Treasurer declined to comment on whether the whopping fine was intended as warning to other banks and financial bodies, but said it was proof the regulatory agencies effectively kept the sector in line. “Whether it was the BBSW [Bank Bill Swap Rate] issue that was taken through the banks … whether it was criminal matters … whether it was the CBA with Austrac … under...
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Criminal cartel charges laid against ANZ, Citigroup and Deutsche Bank 5 June 2018 Citigroup Global Markets Australia Pty Limited (Citigroup), Deutsche Bank Aktiengesellschaft (Deutsche Bank) and Australia and New Zealand Banking Group Ltd (ANZ) have been charged with criminal cartel offences following an investigation by the ACCC. Criminal charges have also been laid against several senior executives: John McLean, Itay Tuchman and Stephen Roberts of Citigroup; Michael Ormaechea and Michael Richardson formerly of Deutsche Bank; and Rick Moscati of ANZ.   The charges involve alleged cartel arrangements relating to trading in ANZ shares held by Deutsche Bank and Citigroup. ANZ and each of the individuals are alleged to have been knowingly concerned in some or all of the alleged conduct. The cartel conduct is alleged to have taken place following an ANZ institutional share placement in August 2015. “These serious charges are the result of an ACCC investigation that has been running...
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'Why me?' Allan Fels scolds ANZ Bank after cartel charges Australian Financial Review Jun 4 2018 11:00 PM Patrick Durkin   Former competition head Professor Allan Fels AO has backed the Australian Competition and Consumer Commission's criminal cartel case against ANZ Bank, Deutsche Bank and Citigroup as experts said the banks were likely to argue they didn't know they were allegedly breaching the law. The Commonwealth Director of Public Prosecutions (CDPP) confirmed on Monday that court attendance notices were issued out of Sydney's Downing Centre Local Court on Friday with the banks and senior staff including ANZ's group treasurer Rick Moscati expected to be served with criminal charges as early as today. The first hearing of the case will be on July 3. The Australian Financial Review revealed on Monday a recorded video conference call between ANZ and its investment bankers was expected to show the parties negotiating how 25.5 million...
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The toughest cop on finance beat The Australian 12:00am June 5, 2018 Pamela Williams   With one hand on the throttle of a record-breaking $700 million fine against Australia’s biggest bank and one foot on the throat of criminal syndicates that ran rings round the bank and shovelled millions through its accounts, Nicole Rose has had a good week. As the new chief of Austrac, Australia’s small but intense ­financial intelligence regulator, Rose has been an uncompromising new cop on the beat, steering the organisation’s breathtaking Federal Court action against the Commonwealth Bank into a huge and mortifying settlement that may have drawn tears from hardened bankers. After signing a heads of agreement early yesterday with CBA chief executive Matt Comyn, Rose and Austrac achieved the distinction of striking the biggest financial settlement in Australian corporate history. Face-to-face negotiations since May 21 between Rose, Comyn and their legal teams stretched into...
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CBA blasted over breaches as $700m fine laid down The Australian 12:00am June 5, 2018 Michael Roddan, Pamela Williams   Scott Morrison has blasted the Commonwealth Bank for putting national security at risk, after the country’s biggest financial institution was hit with a record $700 million fine for flouting anti-money-laundering and counter-terrorism financing laws. The largest penalty in Australian corporate history comes amid warnings from the head of the ­financial intelligence regulator, Austrac, of “exponential growth” in offshore crime syndicates targeting Australian banks in an ­attempt to launder funds. In an exclusive interview, ­Austrac chief executive Nicole Rose told The Australian a large number of criminal gangs were targeting Australia due to the high prices syndicates can charge for drugs. “We think that 70 per cent of our organised or serious crime has links to, or originates, overseas,” Ms Rose said. “This is not Colombian drug cartels; it’s people driving up...
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Scott Morrison hired banker at height of royal commission The Australian 12:00am June 5, 2018 Greg Brown   Scott Morrison hired a National Australia Bank general manager to be a senior adviser in his office at the same time as revelations of appalling behaviour of the big banks were unveiled at the banking royal commission. The Treasurer poached NAB’s general manager of corporate and institutional banking, Adam Clark, to start in his office in April, the same month he warned that executives of major institutions could face jail time for some of the wrongdoings revealed in the Hayne royal commission. Mr Clark, who The Australian does not suggest was involved in any of the behaviour being outlined before the royal commission, worked under former NSW Liberal premier Mike Baird, now chief customer officer in the same division at NAB. Mr Baird landed the executive role at NAB just four months after...
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Banking regulator ponders breaking up the banks The New DailyJun 4 2018 John Power   Australia’s banking regulator has been deliberating proposals to break up the big financial institutions as revelations of misconduct continue to pile up at the banking royal commission. The Australian Prudential Regulation Authority has been considering advice on breaking up the banks, The New Daily can reveal, but is refusing to disclose details on the grounds that it relates to the regulator’s “deliberative process”. The revelation comes after The New Daily filed a freedom of information request with the regulator for material outlining the pros and cons of proposals to separate higher-risk services, such as financial planning and insurance, from everyday banking. APRA refused the application on the basis that documents in its possession that touch on the issue contain “opinion and advice” prepared for its deliberations, exempting them from release. It’s unclear where the advice came...
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Commonwealth Bank to pay $700m in settlement with Austrac over anti-money laundering claims ·         The Australian ·         9:27AM June 4, 2018 ·           ·         MICHAEL RODDAN Reporter Sydney RICHARD GLUYAS Business Correspondent   Melbourne   Commonwealth Bank has agreed to a $700 million settlement with the anti-money laundering regulator — almost double its previous estimates — as it admits to breaching regulations more than 50,000 times. CBA will pay a $700m civil penalty plus the regulator Austrac’s costs of $2.5m, as it admits to breaching anti-money laundering and counter-terrorism financing legislation, including failing to properly carry out risk procedures and customer monitoring. Some of Austrac’s allegations were dismissed as part of the mediated deal. If agreed to by the Federal Court, this will represent the largest ever civil penalty in Australian corporate history. CBA (CBA) had put aside $375 million in a provision for possible penalties stemming from Austrac’s allegations, which...
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Video conference call at heart of criminal cartel case against ANZ Australian Financial ReviewJun 3 2018 11:00 PM Patrick Durkin   EXCLUSIVE  A recorded video conference call involving ANZ Bank's group treasurer Rick Moscati and investment banks JPMorgan, Deutsche and Citigroup, following the bank's $2.5 billion capital raising in 2015, is expected to form the heart of the Australian Competition and Consumer Commission's case against the banksfor allegedly striking a criminal cartel. Senior bankers from ANZ, Deutsche Bank AG and Citigroup Global Markets Australia expect to be served with criminal cartel charges as early as Monday or Tuesday and face court as early as Friday, where they are expected to plead not guilty in the first hearing of the landmark case. JPMorgan is believed to have been granted immunity in the case after self-reporting the issue to the ACCC. The Australian Financial Review understands the conference call between ANZ and its...
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Banks' $220m bill for dudding customers to rise 'significantly': ASIC Sydney Morning Herald 30 May 2018 11:30pm By Clancy Yeates   Banks are set to refund "significantly" more than the $220 million already set aside for financial advice clients who were charged for services that were never provided, as institutions search their files for customers who were ripped off. The Australian Securities and Investments Commission also told Senate estimates on Wednesday night it was investigating a Dollarmites account scam at the Commonwealth Bank after it found out more details about the incident through the media, and it was looking into the revelation CBA charged some dead clients for advice. ASIC also said the conduct of AMP, which has been embroiled in crisis due to revelations at the royal commission, was "extremely disappointing." AMP is the subject of a powerful ASIC investigation, after it admitted to repeatedly misleading the regulator at last...
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Criminal cartel charges laid against ANZ ACCC media release1 June 2018   Following an announcement made by ANZ to the ASX this morning regarding anticipated criminal cartel charges, the ACCC confirms that criminal cartel charges are expected to be laid by the Commonwealth Director of Public Prosecutions (CDPP) against ANZ, ANZ Group Treasurer Rick Moscati, two other companies and a number of other individuals.  These charges will be laid following an investigation by the ACCC. “The charges will involve alleged cartel arrangements relating to trading in ANZ shares following an ANZ institutional share placement in August 2015,” ACCC Chairman Rod Sims said. “It will be alleged that ANZ and the individuals were knowingly concerned in some or all of the conduct.” The ACCC will not make any further comment until charges are laid.  ...
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ABA showdown with ASIC scheduled for next week Australian Financial ReviewMay 31 2018 8:12 PM James Frost   A showdown between the Australian Banking Association CEO Anna Bligh and Australian Securities and Investments chairman James Shipton has been set for next week as the industry body pursues approval for its new code of conduct, the Hayne commission has heard. The looming showdown was revealed after a horror morning for NAB, where the self-described small business bank was exposed for taking the sale proceeds from a property and paying down another facility held with the bank despite having no right to. The bombshell was thrown by counsel assisting Michael Hodge, QC, after counsel for NAB spent hours cross-examining small business owner Mr Ross Dillon, who showed his frustration as the line of questioning sought to cast doubt on his memory of events. The heavily-anticipated appearance from the ABA boss was brief by...
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APRA's Wayne Byres downplays impact of Royal Commission on credit Australian Financial Review May 30 2018 6:43 PM Jacob Greber   Australia's leading bank regulator has downplayed suggestions the royal commission will crimp credit growth, saying that while many financial institutions will need to restore customer trust the system overall remains stable and sound. Speaking to Senate estimates, APRA chairman Wayne Byres described revelations from the royal commission as "disturbing" and said they go to the heart of whether financial institutions "treat their customers fairly". "However, while institutions have a great deal of work to do to restore trust, I want to emphasise that Australians can be reassured that the industry is financially sound, and that the financial system is stable," he told the committee. "That reflects considerable policy reform and hands-on supervision, over a long period of time, designed to build strength and resilience. " The remarks counter warnings from...
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Household debt the top Australian risk: OECD Australian Financial Review May 30 2018 7:16 PM Jacob Greber   The faltering property market and heavy household debt are the biggest risks to the nation's rebounding economy, which is benefiting from a global growth spurt fuelled by US tax cuts and fiscal stimulus, says the OECD. In its latest outlook the Organisation for Economic Co-operation and Development reports that "fiscal policy is the new game in town", with three-quarters of member nations stimulating their economies through increased fiscal spending and reduced corporate taxes. It warns that while the boost is welcome, it may lead to inflationary pressures that would trigger higher interest rates. OECD unemployment is set to reach its lowest level since the 1980s, it says, and is slowly showing signs of lifting wages across the advanced world. A raft of risks continue to temper the outlook – led by a potential...
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Chinese property investment plummets: FIRB Australian Financial Review May 30 2018 10:31 AM Su-Lin Tan, Nick Lenaghan   Proposed Chinese investment in Australian real estate of all kinds has halved to $15.2 billion as internal capital controls and new taxes crimp demand, according to the latest Foreign Investment Review Board figures. The factors affecting foreign investment include the tightening of bank lending to foreigners and tighter Chinese capital controls, given that Chinese investors comprised 40 per cent of applications, the FIRB report said. China is still the biggest foreign investor overall both by value of approvals, $38.9 billion, and by number of approvals, 9714 in the 2016-17 year. As with the previous year's tally, the United States remains Australia's second largest source of approvals by value, with $26.5 billion. The total value approved for China and the US in 2016-17 fell by $8.4 billion and $4.5 billion respectively, compared with the...
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Banking royal commission sparks more complaints to ASIC over finance misconduct ABC News31 May 2018 Tom Iggulden   The banking royal commission has unleashed a deluge of fresh complaints and admissions about misconduct in the finance sector, the corporate regulator has revealed. Customer complaints about banks to the Australian Securities and Investments Commission (ASIC) are up almost 20 per cent in the year to April. Banks are also dobbing themselves in — "breach notices" filed with ASIC by banks are up 40 per cent over the same period. "I think there's a royal commission on in town," ASIC regional commissioner Warren Day told a senate estimates committee when asked to explain the surge in self-reporting. Banks have not traditionally been as forthcoming. ASIC gave evidence that, on average, it took banks four years to internally investigate suspicious "events" among their staff and another four months after that to report to ASIC....
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Banking royal commission: Commonwealth Bank says Bankwest wasn't up to scratch Australian Financial ReviewMay 29 2018 9:00 PM James Frost   Bankwest's aggressive pursuit of business on the east coast left its business loan portfolio in a far worse state than CBA had anticipated and prompted it to rapidly shrink its commercial property loan book by 20 per cent, the royal commission has heard. CBA chief risk officer David Cohen said reviews conducted of the bank after the purchase raised significant concerns about both the quality of the business loan book and the processes used to grant the loans. "It was both at the business level and at the risk management function level," Mr Cohen said. CBA's Mr Cohen has been asked to explain the bank's role in relation to a series of case studies that put a spotlight on Bankwest's expansion into, and then rapid retreat from, small business loans...
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ANZ slashes interest-only rates in bid to rebuild property investor market share Australian Financial Review May 28 2018 1:25 PM Duncan Hughes   ANZ, the nation's third largest mortgage lender, is the latest banking major to target interest-only property investors with big cuts to residential loans. The bank is reducing popular two year interest-only residential investment loan and the less popular two year interest in advance by 26 basis points. It means the headline rates are reduced to 4.33 per cent and 4.13 per cent respectively. It has also cut 11 basis points off its two year residential investment loan to 4.23 per cent. The cuts follow the Australian Prudential Regulation Authority ending the cap on investor loan growth for any lender that could prove its investor loan book has been growing below the benchmark for at least the past six months and show it has met its requirements on loan...
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Money Choice customers left homeless, burdened with debt after loan scandal ABC News(7.30) 29 May 2018 Sarah Farnsworth,  Naomi Selvaratnam   EXCLUSIVE  Australia's four major banks are embroiled in a scandal that has left more than 100 people in financial ruin after they were given millions of dollars in loans they could never pay back. Real estate investment company Money Choice and its director Matt George are accused of arranging these mortgages, as well as filling in loan documents including grossly overstating incomes and assets. A group of former Money Choice customers have written to the big four banks asking them to review the loans, which they estimate amount to nearly $84 million. The company was banned back in 2013 by the Australian Securities and Investment Commission (ASIC) — however former clients living with severe debt have been left with little redress. Dozens of families say they've been forced to sell...
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  • Duped
    Duped says #
    I wish I had never met this Matt George and his company Money Choice. He is a smooth talker and whilst he was only doing what the
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