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.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form
Mortgage stress at record high (again) Digital Finance Analytics8 February 2019 Martin North  Digital Finance Analytics (DFA) has released the January 2019 mortgage stress and default analysis update. The long grind in WA continues, with more households under financial pressure, but we are seeing further deterioration in other states too. The negative wealth effect is biting now. The number of households in severe stress continues to rise. The latest RBA data on household debt to income to September fell a little to 188.6[1], but still remains highly elevated. The housing debt ratio continues to climb to a new record of 139.6, according to the RBA.  This shows that household debt to income is still increasing.  This high debt level helps to explain the fact that mortgage stress continues to rise. Across Australia, more than 1,026,106 households are estimated to be now in mortgage stress (last month 1,023,906), another new record. This equates to more...
Last modified on
Hits: 80 0 Comments
Rate this blog entry:
0
Continue reading
Reserve Bank of Australia stance swayed by 'housing uncertainty' Australian Financial Review Feb 8, 2019 6.28pm Sarah Turner, Jonathan Shapiro, John Kehoe   The Reserve Bank of Australia is becoming more anxious that an accelerating property market downturn could derail household spending and business investment just as risks from a global slowdown are on the rise. A further decline in house prices had become "a significant area of uncertainty" the Reserve Bank said, as it detailed on Friday why it had downgraded its economic growth forecasts and shifted to a neutral stance on raising or cutting interest rates. The RBA's revised forecasts still paint a picture of economic health, with growth expected to remain above trend, at or just below 3 per cent, and unemployment tipped to fall below 5 per cent. Reserve Bank governor Philip Lowe still hopes a tightening labour market will spur wage growth and lift lacklustre inflation...
Last modified on
Hits: 95 0 Comments
Rate this blog entry:
0
Continue reading
Banking royal commission: Vertical integration's days are numbered Australian Financial Review Feb 8, 2019 11.00pm Andrew Clark   Beyond dramatic headlines and NAB's executive meltdown, a measured judgment on the Hayne pain comes from Tony Hartnell, who has more than half a century of corporate regulation and advising figures like Rupert Murdoch and Kerry Packer behind him. More than 35 years later, the excesses and abuse resulting from a privileged banking oligopoly engaging in wealth management areas like superannuation and investment advice were "predictable" and former High Court judge Kenneth Hayne's exposure of dodgy practices like "fees for no service", or "money for nothing" trailing commissions for mortgage brokers, were the "the results", according to Hartnell. After a year of Hayne royal commission hearings, a withering critique of misdeeds in his final report, and Thursday's resignation of NAB chairman Ken Henry and chief executive Andrew Thorburn, Australia's four-pillar banking system is...
Last modified on
Hits: 87 0 Comments
Rate this blog entry:
0
Continue reading
Banking royal commission: expect long-term political fallout from the Hayne report The Australian 12:00am February 9, 2019 Paul Kelly   The Hayne royal commission is a landmark in documenting the moral and financial betrayal of the public by financial and bank elites, raising the pivotal issue of whether genuine reform is possible and the price tag it may involve. This report will reverberate within politics for many years. The premature claim early last week was that the banks were escaping untouched. That’s wrong. This report shows the public has been robbed and exploited by “the big end of town” but there is one potent retaliatory power the people do possess — votes at the ballot box. No political party can afford to be seen as a proxy for the banks. No bank chief executive or chair was able to survive explicit criticism from commissioner Kenneth Hayne, hence the demise of NAB’s...
Last modified on
Hits: 101 0 Comments
Rate this blog entry:
0
Continue reading
CBA, NAB, AMP face criminal charges The Australian 12:00am February 9, 2019 Ben Butler   EXCLUSIVE  Banking royal commissioner Kenneth Hayne has discussed criminal prosecutions of AMP, Commonwealth Bank and NAB for dishonesty offences with the corporate regulator, The Weekend Australian can reveal. In his final report, released on Monday, Mr Hayne said the Australian Securities & Investments Commission told him in August it was considering sending a brief of evidence to prosecutors about one institution and in November he referred two others to ASIC for potential prosecution. The institutions, which Mr Hayne did not name, are among at least five that Mr Hayne said he suspected may have committed the offence of engaging in dishonest conduct in relation to a financial product or financial service — a crime that attracts a fine of up to $9.45 million for corporations, or 10 years jail for an individual. These referrals are separate...
Last modified on
Hits: 172 0 Comments
Rate this blog entry:
0
Continue reading
Macquarie veterans Bill Marynissen, Rob Johnston exit embattled wealth arm Australian Financial Review Feb 8, 2019 5.20pm Sarah Thompson, Misa Han   Macquarie Group veterans Bill Marynissen and Rob Johnston have become the latest, and arguably most high-profile, departures from the unravelling private wealth division. As first revealed by Street Talk, Macquarie announced on Friday that the head of Macquarie wealth management, Mr Marynissen, and head of wealth advisory, Mr Johnston, will retire from the business on March 31. Mr Marynissen, who spent 37 years at the bank and is the sixth-longest-serving employee at Macquarie, will be replaced by executive director Sean West. Mr Johnston has spent 22 years at Macquarie. The departures follow Macquarie's shift in gear last year to merge its private bank and private wealth businesses and focus exclusively on wealthier clients after the Hayne royal commission revealed industry-wide troubles in the retail advice sector. Under the new...
Last modified on
Hits: 111 0 Comments
Rate this blog entry:
0
Continue reading
Prosecutor widens bank team The Australian 12:00am February 9, 2019 Ben Butler   EXCLUSIVE  The prosecutor who will be responsible for overseeing any criminal cases against banks and bankers coming out of the financial services royal commission says he is hiring extra staff and engaging external barristers to deal with a possible wave of referrals from the Australian Securities & Investments Commission. In an interview with The Weekend Australian, Commonwealth Director of Public Prosecutions deputy director Berdj Tchakerian also defended the agency’s record in going after foreign bribery by Australian companies, while acknowledging that white collar offences could take years to pilot through the legal process. Mr Tchakerian, who oversees the CDPP’s commercial, financial and corruption area, said the agency’s capacity to take on complex financial crime had been boosted by the Morrison government’s pledge to give it an additional $41.6 million over the next eight years. “With the provision of...
Last modified on
Hits: 85 0 Comments
Rate this blog entry:
0
Continue reading
Words of caution from Reserve Bank governor Philip Lowe Australian Financial Review Feb 7, 2019 11.00pm   [These are the remarks that got most of the media attention, but which are not included in the official RBA transcript I linked to in Wednesday’s intel] In questions and answers at the National Press Club this week, Reserve Bank governor Philip Lowe spoke widely on the economy. This transcript was recorded and edited by The Australian Financial Review. On the royal commission and banks winning back trust RBA governor Philip Lowe: Why did this happen? I think there was clearly a big focus on sales, and I mean, at the end of the day, finance is about providing services, and any financial institutions focused on selling product ... why'd that occur? There were the internal renumeration incentives, and another thing that happened is financial institutions have been very profitable for decades, and when...
Last modified on
Hits: 69 0 Comments
Rate this blog entry:
0
Continue reading
Banking royal commission: Hayne ‘insider trading’ probed The Australian 12:00am February 8, 2019 Michael Roddan   The corporate watchdog will ­assess claims that financial markets investors made a $22 million profit from trading on insider information contained in Kenneth Hayne’s royal commission final report, despite senior regulators doubting the veracity of the claim. Labor and the Greens have sought to pile political pressure on the government over insider trading claims, which opposition fin­ancial services spokeswoman Clare O’Neil said were written by a “respected economic commentator” on the online news site The New Daily, which is operated by industry super fund sector ­umbrella group Industry Super Holdings. The allegations centre on a substantial $500m purchase of shares in the major banks at 11am on Monday — ahead of the release of the royal commission report later that day — the buyers of which would have supposedly benefited to the tune of $22m...
Last modified on
Hits: 83 0 Comments
Rate this blog entry:
0
Continue reading
Hayne recommendations are a death blow for smaller brokers The Australian 12:00am February 8, 2019 Pauline Hanson Pauline Hanson is a senator for Queensland and leader of Pauline Hanson’s One Nation Party.  Commissioner Kenneth Hayne’s recommendations in his final report into misconduct in the banking industry have immediately jeopardised the survival of more than 17,000 small businesses across Australia. That’s the number of mortgage brokers who rely on upfront and trailing commissions paid by the lender to survive. Take those commissions away and make the mum and dad borrower pay, and you will decimate the industry. That’s tens of thousands of jobs, millions of dollars in tax revenue and much less competition for the big banks. The recommendations have also put in jeopardy more than 100 small lenders in Australia — lenders that have shifted into regional areas to partially fill the void left by the big banks moving out. Those...
Last modified on
Hits: 76 0 Comments
Rate this blog entry:
0
Continue reading
Banking royal commission: two executives down, the rest lucky to keep their jobs The Australian 12:00am February 8, 2019 Adam Creighton   The rest of the nation’s bank chairmen and executives would have counted themselves lucky last night after they learned that National Australia Bank’s Ken Henry and Andrew Thorburn had been punted from two of the plushest gigs in corporate Australia. Indeed, they should be thankful that they still have their jobs, because if Thorburn and Henry had to go, then they all should have gone. A clean-out of the top echelons of the biggest banks was what the public deserved after the consistent poor behaviour unearthed by the royal commission. If the resignations of these two men, and a few other previously unknown executives last year, is the pointy end of the royal commission, then the latter has been an abject failure. Where is the structural reform? Thorburn earned...
Last modified on
Hits: 59 0 Comments
Rate this blog entry:
0
Continue reading
NAB's Andrew Thorburn, Ken Henry resign, Phil Chronican named acting CEO Australian Financial Review Feb 7, 2019 7.36pm James Frost, Jonathan Shapiro, James Eyers   NAB's embattled chief executive Andrew Thorburn and chairman Ken Henry have capitulated to growing pressure and announced their resignations as the crisis of confidence swirling around the bank came to a head. The bank has tapped veteran banker Phil Chronican to replace Mr Thorburn from February 28 as acting chief executive, while Dr Henry will remain in his role until a new leader is found. The bank will also begin a clean-out of the board in the hope of rebooting the culture after a damaging period that saw the bank lurch from one crisis to the next. Mr Thorburn said it had been a tough week and over the last 24 hours he had come to a realisation that the time was right to leave. "I...
Last modified on
Hits: 62 0 Comments
Rate this blog entry:
0
Continue reading
CBA has 'wasted a good crisis': Deutsche Australian Financial Review Feb 7, 2019 4.37pm Jonathan Shapiro   Commonwealth Bank may have wasted a "good crisis" by choosing to revert to a basic banking model rather than invest in new opportunities. That's the view of Deutsche Bank analysts Matthew Wilson and Anthony Ho after the lender delivered a cash net profit of $4.67 billion for the first half of 2019 that missed expectations. "CBA had the currency to be bolder, the management youth to be more contemporary and cutting edge, the time to invest, the capability to be more canny and a portfolio of option pay-offs," the analysts told clients on Thursday. "Instead it is now moving to a savings-and-loan model seeking cost reduction." Deutsche questioned whether CBA's prudence meant it was positioning for a more challenging environment where revenues were harder to come by, while global growth prospects became more uncertain....
Last modified on
Hits: 46 0 Comments
Rate this blog entry:
0
Continue reading
Taxpayer funded inquiry used to raise money for Liberals Sydney Morning Herald February 8, 2019 12.00am Eryk Bagshaw   EXCLUSIVE  The Coalition is using a taxpayer-funded inquiry into Labor’s franking credits policy to raise funds for the Liberal Party, as the committee prepares to meet with dozens of angry retirees for the final time before Parliament returns. Letters to self-managed super fund trustees from Liberal MP Jason Falinski, seen by the The Sydney Morning Herald and The Age, show the House economics committee member using the inquiry to entice voters to donate to the Liberal Party in exchange for an audience with committee chair Tim Wilson. Mr Wilson is facing calls to resign after shadow treasurer Chris Bowen accused him of "collusion" with private interests to maximise political pressure on a Labor policy. The Victorian MP discussed co-ordinating protests at the inquiry with his relative, Geoff Wilson, the founder of a...
Last modified on
Hits: 63 0 Comments
Rate this blog entry:
0
Continue reading
Savings cuts create aged-care ‘losers’ The Australian 12:00am February 7, 2019 Rick Morton   EXCLUSIVE  Aged Care Minister Ken Wyatt was handed a departmental briefing report showing the “winners and losers” from the Coalition’s $2 billion savings drive in the aged-care sector shortly after Scott Morrison announced a royal commission and denied funding cuts. Documents obtained by The Australian under Freedom of Information laws show the proportion of “losers” almost tripled to 53 per cent following the budget savings revealed in late 2015. In the three-year period to 2018, aged-care services that had been classified as “winners” almost halved to 47 per cent, according to the brief sent to Mr Wyatt. A series of “hot issue briefs, question time briefs and general briefs” sent to Mr Wyatt last year acknowledged the budget hit to the Aged Care Funding Instrument — which is the basic taxpayer care subsidy paid to all nursing...
Last modified on
Hits: 48 0 Comments
Rate this blog entry:
0
Continue reading
Labor warming to a new enforcement agency to prosecute bank offenders Sydney Morning Herald 6 February 2019 11:45pm David Crowe   EXCLUSIVE  Australia’s corporate regulator is on notice to show a “radical” increase in court actions in the wake of the Hayne royal commission, with Labor warming to a new enforcement agency to prosecute offenders. In a new front in the political fight over the banks, Labor is considering the idea of a new “civil enforcement agency” that could take over the work of the Australian Securities and Investments Commission because the existing regulator has been too soft on wrongdoing. The number of criminals imprisoned from ASIC prosecutions fell to six last financial year, about half the usual number, and the number of criminal and civil actions concluded fell to 138, the lowest level in five years. While the regulator imposed civil penalties worth $42.2 million last year, up from just...
Last modified on
Hits: 65 0 Comments
Rate this blog entry:
0
Continue reading
RBA governor Philip Lowe questions banks’ high returns The Australian 12:00am February 7, 2019 Michael Roddan   Australia’s banking sector is still among the most profitable in the world, according to Reserve Bank governor Philip Lowe, who questioned whether the super-sized return on equity generated by the major lenders was “sustainable”. Speaking in Sydney yesterday following the release this week of the final report of Kenneth Hayne’s royal commission, Dr Lowe said while banking sectors in many other developed English-speaking nations had registered a fall in profitability in the wake of the global financial crisis, that of Australian banks remained high by international standards. “At the moment the Australian banks are earning roughly 13 per cent return on equity,” Dr Lowe said. “When I talk to overseas bankers and ask them what return on equity they’re targeting, a number around 10 is common.” Banking stocks have surged in the wake of...
Last modified on
Hits: 50 0 Comments
Rate this blog entry:
0
Continue reading
Non-bank lenders slash rates as wall of money floods property debt funding Australian Financial Review Feb 6, 2019 6.12pm Larry Schlesinger   Non-bank lenders, who have provided a funding lifeline to developers and investors following a retreat by the major banks, have been forced to slash interest rates by up to 400 basis points following a ramp-up in competition. Chrish Samuel, who runs finance house Windsor Capital Management, said he had witnessed rates fall from 12 per cent in early 2018 to under 8 per cent currently – including across his own business – for property-backed debt funding after more than a billion dollars poured into the short-term debt market recently. Windsor Capital has lent more than $275 million in the past 12 months to "experienced property developers". Its client list includes Salcorp, Chiodo Corporation, Frater Group and M Property Developments. As with other non-bank lenders, its capital comes from a...
Last modified on
Hits: 68 0 Comments
Rate this blog entry:
0
Continue reading
CBA boss says heads will roll over financial planning scandal, but it won't be his ABC News6 February 2019 7:56pm Elysse Morgan   Matt Comyn has failed in his first big test to show that the Commonwealth Bank is cleaning up its act, in what he says is an "unacceptable failure" on the part of some bank staff. The bank failed to convince the regulator it had stopped charging fees for no service and Mr Comyn has indicated that heads may roll — but not his. "Ultimately I am accountable for everything that happens inside the Commonwealth Bank but, for those people leading that project, clearly we haven't delivered what we should have been and we will be doing a review and a number of those people have been stood down and there will be consequences that will flow from that," Mr Comyn told The Business. "In my mind it is...
Last modified on
Hits: 56 0 Comments
Rate this blog entry:
0
Continue reading
'Right to be cautious': Philip Lowe, Matt Comyn back a role for mortgage brokers Australian Financial Review Feb 6, 2019 7.00pm James Eyers   Reserve Bank governor Philip Lowe has backed Treasurer Josh Frydenberg's cautious approach towards the royal commission's call for bank-paid mortgage broker commissions to be replaced with customer-paid fees, saying the impact on competition required consideration. Commonwealth Bank chief executive Matt Comyn also engaged in the most politically contentious issue from the royal commission's final report, backing the role mortgage brokers played to ensure a competitive market, and suggesting any new regulation should also require banks to charge customers an equivalent fee "so as to not create an uneven playing field". After listed mortgage brokers groups saw their share prices savaged following the royal commission's final report, the broking industry will kick off a national advertising campaign on Thursday arguing the move will drive customers to the largest...
Last modified on
Hits: 77 0 Comments
Rate this blog entry:
0
Continue reading