Banking & Finance

Thorn Group (TGA)

22 May 2012 | Qaiser Malik

Thorn Group’s share price jumped more than 5 per cent after it announced a 26.4 per cent rise in net profit to $27.8 million for the year to March.

Video | Cornell: In the Banks

22 May 2012 |

Despite interim results from three of the big four banks out in the past fortnight, Europe’s volatility is dominating Australian banks’ concerns.

Force banks to mirror RBA rates: Howes

22 May 2012 |

Trade union boss Paul Howes believes financial institutions should be forced to mirror movements of official interest rates when setting their lending rates.

Thorn profit rises 26 pc but outlook cautious

22 May 2012 | Sue Mitchell

Retail and financial services company Thorn Group has delivered its sixth consecutive year of profit growth but has warned that the rate of earnings growth may slow in 2013 as subdued consumer spending and costs associated with new businesses take their toll.

Apps ‘more secure’ than mobile websites: NAB

22 May 2012 |

Smartphone and tablet apps are more secure than mobile websites if designed properly, a senior banking technology executive says.

Olympic recruitment games, ahead of London

22 May 2012 | Sally Rose

Only a handful of Olympians have the profile of Geoff Huegill, who recently joined Commonwealth Bank, but lesser known elite athletes can also make for attractive recruits.

Westpac says 1m customers access accounts via smartphone

22 May 2012 |

More than a million consumer and business customers are now using a smartphone regularly to access Westpac accounts, the bank says.

Pressure builds on corporate loan pricing

PRINT: Capital | 22 May 2012

Australian companies are sitting out of the debt markets for now but eventually they will have to refinance debt, and face banks nervous to protect net interest margins.

China gets direct line to buying US Treasuries

22 May 2012 |

China can now bypass Wall Street when buying US government debt and go straight to the US Treasury, in what is the Treasury’s first-ever direct relationship with a foreign government

Investors raise €60bn to buy European bank assets

PRINT: Capital | 22 May 2012

About €60 billion has been raised to buy so-called noncore loan assets currently held by European banks, according to the accounting firm PricewaterhouseCoopers.

US prosecutor says Gupta cheated as trial begins

22 May 2012 |

A former Goldman Sachs Group board member “threw away his duties” in divulging secrets about the investment bank to now-imprisoned hedge fund manager Raj Rajaratnam, a US prosecutor said.

BofA CEO ‘comfortable’ with bank’s investments

22 May 2012 |

Bank of America is “very comfortable” with the composition of its corporate investment portfolio, chief executive officer Brian Moynihan said at an investor conference on Monday.

Spain hires two firms to audit nation’s banks

22 May 2012 |

Spain says it has hired two consultancy firms to audit its banks and dispel deep doubts over their property assets, but it denies any need for a foreign bailout.

JPMorgan suspends $US15bn stock buyback

22 May 2012 |

Updated | JPMorgan Chase boss Jamie Dimon is suspending plans to buy back the embattled company’s own stock, but it will still pay a dividend despite its $US2 billion trading loss.

Barclays to sell entire stake in BlackRock

22 May 2012 |

Updated | Barclays plans to sell its $US6.1 billion stake in the investment management firm BlackRock, moving before a new banking regulation framework takes effect.

Rebound a tribute to wishful thinking

22 May 2012 | Glenn Mumford

PRINT: 22 May 2012 | PAGE 5 | Bounce a tribute to wishful thinking

It’s always tempting to play for the bounce. So after three weeks of selling, investors again seem willing to buy risk.

Company briefs

22 May 2012 |

PRINT: 22 May 2012 | PAGE 3 | co briefs

Customer satisfaction with ANZ Banking Group has fallen after its decision to set interest rates independently of the Reserve Bank of Australia.

Rate cuts good but fewer risks better

22 May 2012 | George Liondis

PRINT: 22 May 2012 | PAGE 4 | Rate cuts good but fewer risks better

Interest rate cuts alone are unlikely to turn around a slump in demand for loans from corporate Australia, says the head of business banking at National Australia Bank.

Traders turn owls to keep a pip ahead

22 May 2012 | John Wasiliev

PRINT: 22 May 2012 | PAGE 5 | Traders turn owls to keep a pip ahead

Derivative traders are being turned into evening owls as foreign exchange activity attracts more attention since the $A’s plunge below parity to the American dollar.

CBA shrugs off funding worries

22 May 2012 | John Kehoe

PRINT: 22 May 2012 | PAGE 1 | CBA shrugs off funding worries

Commonwealth Bank of Australia group treasurer Lyn Cobley says European funding markets are open for high quality Australian banks, despite renewed concerns over Greece’s sovereign debt problems.

Facebook shares fall 11 per cent in early trading

22 May 2012 |

Facebook shares opened below their $US38 issue price on Monday as support from underwriters of the initial public offering dissipated after its Friday debut.

Cheques . . . going, going but not yet gone

22 May 2012 | Ruth Liew

PRINT: 22 May 2012 | PAGE 5 | Cheques . . . going, going but not yet gone

Thirty-nine-year-old Jeffrey Triganza carries his cheque book in his work bag every day and relies on cheques to make personal and business payments.

Nikkei ends up 0.3pc on G8 reassurances

21 May 2012 |

Japan's Nikkei average inched up on Monday, with short-covering prompting a recovery from the sharp losses of the previous session, and a call from world leaders for Greece to remain in the euro zone helping to soothe investors' jitters.

CFO | ‘Value at Risk’ has a place if you know its limits

21 May 2012 | Shaun Drummond

Value at risk models have a place, but there always needs to be a real world check on what is being fed into them, and they’re unlikely to tell you how big the big risks are going to be - which ultimately is what really matters.

MF Global trustee wins collateral from JPMorgan

21 May 2012 |

The trustee overseeing the return of customer money after the collapse of MF Global has received more than $US168 million from JPMorgan Chase, the first bank payment since the commodities brokerage firm filed for bankruptcy in October.

CFTC said to open inquiry into JPMorgan loss

21 May 2012 |

A federal investigation into JPMorgan Chase’s multibillion-dollar trading loss has widened as regulators pursued a new line of inquiry.

Commonwealth Bank (CBA)

21 May 2012 | Brendon Lau

Morgan Stanley has upped its price target on Commonwealth Bank of Australia to $51.10 from $47.40 a share as it believes the stock is more defensive than its rivals.

Tongue-lashing for Kev

21 May 2012 |

PRINT: 21 May 2012 | PAGE 52 | Tongue-lashing for Kev

ANZ Banking Group chief executive Mike Smith was his usual quotable self during an appearance on Friday at an Asia Business forum at Melbourne's Crown Palladium.

JPMorgan: sorry tale of egos and illness

21 May 2012 | Jessica Silver-Greenberg

PRINT: 21 May 2012 | PAGE 2 | JPMorgan: a sorry tale of egos and illness

Ever since JPMorgan Chase disclosed a multibillion-dollar trading loss this month, the central mystery has been how a bank known for its skill at risk management could err so badly.

Low rates lead to high risk

21 May 2012 | Ben Potter

PRINT: 21 May 2012 | PAGE 2 | Low rates lead to high risk

Potter | It’s a bit early for the lessons of the 2008 crisis to have been forgotten. But maybe the lessons of the 1990s tech boom have receded.

Aussie banks say they can ride it out

21 May 2012 | George Liondis

PRINT: 21 May 2012 | PAGE 4 | Aussie banks say ‘we’re all right mate’

Australia’s banks are at risk of being drawn into Europe’s debt crisis as a measure of their funding costs rises to its highest level this year. But they claim they are prepared for the worst in Europe.

CBA search for retail chief goes global

21 May 2012 | John Kehoe

PRINT: 21 May 2012 | PAGE 1 | CBA search for retail chief goes global

Commonwealth Bank of Australia has begun a global search for candidates to replace its outgoing retail bank head Ross McEwan.

UK ‘may never recover’ from euro crash

21 May 2012 | Rowena Mason

PRINT: 21 May 2012 | PAGE 14 | UK ‘may never recover’

Britain’s economy may suffer “permanent” damage and “never quite get back up” if the euro collapses in a chaotic way, according to the government’s chief economic forecaster.

Austerity – what a laugh!

21 May 2012 | Robert Guy

PRINT: 21 May 2012 | PAGE 1 | Austerity – what a laugh!

Guy | The irony would not have been lost on Angela Merkel as she listened to advice from some of the world’s most enthusiastic money printers.

A Rowe boat

19 May 2012 |

PRINT: 19 May 2012 | PAGE 56 | A Rowe boat

With financial markets mired in uncertainty, it is not surprising that demand for ultra-luxury yachts is not what it used to be.

No problem here

19 May 2012 |

PRINT: 19 May 2012 | PAGE 56 | No problem here

Michael Chaney was seemingly speaking with his Woodside hat on rather than National Australia Bank one when he came out backing fellow chairman Jac Nasser of BHP Billiton this week.

Put your planner in the spotlight

19 May 2012 | Ruth Liew

PRINT: 19 May 2012 | PAGE 3 | Put your planner in the spotlight

Choose wisely and a financial planner can help you grow your assets, and reforms in the offing should minimise ‘bad eggs’.

NAB offer hits the right note

19 May 2012 | John Wasiliev

PRINT: 19 May 2012 | PAGE 3 | NAB offer hits the right note

Income investments paying interest returns that rise and fall with the money market are in the news constantly, with companies and big banks offering them on a regular basis.

Waiting for the other shoe to drop

19 May 2012 | Anna Bernasek

PRINT: 19 May 2012 | PAGE 3 | Morgan, waiting for the other shoe to drop

Bernasek | Judging by the reaction to JPMorgan Chase’s $2 billion trading loss you’d think America’s leading bank had just gone bust.

No way but out of the euro, Smith warns

19 May 2012 | George Liondis

PRINT: 19 May 2012 | PAGE 1 | No way but out, Smith warns

Australia and New Zealand Banking Group chief Mike Smith has warned that a break up of the Euro zone appears inevitable as the region's deepening debt crisis threatens to engulf world markets.

Bank’s boss won’t back off

19 May 2012 | Andrew Cornell

PRINT: 19 May 2012 | PAGE 1 | Bank’s boss won’t back off

In the immediate shadow of the JPMorgan revelation, a focus on prudential scrutiny makes even more sense.

Nikkei falls 3pc as investors cut exposure

18 May 2012 |

Japan's Nikkei average shed 3 per cent on Friday to log a seventh straight week of losses, its longest such run since the third quarter of 2001, as investors cut exposure to risky assets on concerns over slowing growth and a deepening euro zone crisis.

Water everywhere but not a drop before time

PRINT: Capital | 18 May 2012

Fifteen senior deal makers gathered in Sydney to initial the final documents on a $2.3 billion deal to privatise the city’s desalination plant. They took care not to be seen – for good reason.

ASX slumps 2.7pc on Europe fears

18 May 2012 |

Updated | Australian shares tumbled 2.7 per cent on Friday on growing concerns about the global economic outlook, fanned by an escalating banking crisis in Spain, political turmoil in Greece and sluggish US data.

US Senate wants Morgan chief to explain $2bn loss

18 May 2012 | Dominic Rushe

PRINT: 18 May 2012 | PAGE 1 | US Senate wants Morgan boss to explain $2bn loss

The US Senate banking committee plans to call JP Morgan boss Jamie Dimon to Washington to explain how the bank lost $US2bn in poorly supervised trading.

Jump on the Asian wagon

18 May 2012 | Duncan Hughes

PRINT: 19 May 2012 | PAGE 1 | Jump on the Asian wagon

Australia has a unique opportunity to share in unprecedented Asian growth over coming decades, ANZ chief executive Mike Smith says.

Nikkei drops sharply, weighed down by troubled Spanish banks

18 May 2012 |

Japan's Nikkei share average dropped sharply on Friday morning with securities hammered by fears of contagion from Spain's ailing bank system and a strong yen pushed down exporters.

Commonwealth Bank of Australia (CBA)

18 May 2012 | Bianca Hartge-Hazelman

Deutsche Bank and Morningstar have retained positive recommendations on Commonwealth Bank following its third-quarter result.

Northern Rock rescue may cost taxpayer £2bn

18 May 2012 |

Rescuing Northern Rock could cost British taxpayers £2 billion, but it should be seen as the cost of securing financial stability, according to the National Audit Office.

Moody’s downgrades 16 Spanish banks

18 May 2012 |

Moody’s Investors Service has downgraded the long-term debt ratings for 16 Spanish banks, in part because of constraints on the government’s ability to provide them with support.

Spain denies run on deposits at Bankia

18 May 2012 |

The Spanish government has denied a newspaper report that customers had withdrawn more than €1 billion from the partly nationalised lender Bankia over the past week

Fitch says top global banks need $US566bn

18 May 2012 |

The world’s top 29 banks may need a total of $US566 billion to meet tougher capital rules, cutting returns by a fifth and forcing them to curb investor payouts, Fitch Ratings said.

How Australia can profit from the Asian century

18 May 2012 | Mike Smith

PRINT: 18 May 2012 | PAGE 2 | How Australia can profit from the Asian century

The national discussion needs to focus more on opportunities in the region rather than the risks.

Notebook: dancing with derivatives

18 May 2012 | Maureen Dowd, New York Times

PRINT: 18 May 2012 | PAGE 50 | NOTEBOOKDancing with derivatives

Jamie Dimon calls it “a doozy”. And it was. A $US2 billion credit derivatives trading bungle by JPMorgan that could mushroom to a $US4 billion loss.

It’s a small world . . .

18 May 2012 |

PRINT: 18 May 2012 | PAGE 48 | It’s a small world . . .

ANZ chief Mike Smith has recently made a few strident comments about JPMorgan Chase, and his company secretary is the brother of JPMorgan’s Australian boss.

Macquarie in $4bn gas deal

18 May 2012 | Stefan Nicola, Brett Foley

PRINT: 18 May 2012 | PAGE 24 | Macquarie in $4bn gas deal

A group led by Macquarie Group has agreed to pay €3.2 billion ($4.1 billion) to EON for a network of natural gas pipelines in Germany.

Europe reaps a bitter harvest

18 May 2012 | The Australian Financial Review

PRINT: 18 May 2012 | PAGE 1 | Europe reaps a

Editorial | European policymakers have no one but themselves to blame for their economic and financial predicament. It is the direct result of the political compromises put in place to secure monetary union.

Safety first after one crack too many

18 May 2012 | Andrew Cornell

PRINT: 17 May 2012 | PAGE 22 | It’s safety first after one crack too many

Cornell | The humiliating trading debacle at JPMorgan Chase has winded those who have been arguing regulators should back off.

Heritage in $125m retail bond offer

18 May 2012 | Jonathan Shapiro

PRINT: 18 May 2012 | PAGE 20 | Heritage in $125m retail bond offer

Queensland-based regional lender Heritage Bank has launched a $125 million offering of listed bonds in a rare issue of senior-ranking corporate debt to retail investors.

Asia prepares to ride out Greek storm

18 May 2012 | Keiko Ujikane

PRINT: 18 May 2012 | PAGE 2 | Asia prepares to ride out Greek storm

Japan’s economy expanded faster than estimated in the first quarter, boosted by reconstruction spending which is poised to fade just as a worsening in Europe’s crisis threatens to curtail export demand.

JPMorgan losses mounting fast

18 May 2012 | Nelson Schwartz

PRINT: 18 May 2012 | PAGE 2 | Bank’s losses mounting fast

The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $US2 billion estimate by at least $US1 billion, according to people with knowledge of the losses.

Key firms to get closer supervision

18 May 2012 | Carla Main

PRINT: 18 May 2012 | PAGE 2 | Key firms to get closer supervision

US financial regulators are looking at specific non-bank financial companies to possibly designate them as systemically important and subject to more rigorous supervision, said Michael Gibson, director of the Division of Banking Supervision and Regulation at the Federal Reserve Board.

Euros flight from Greece speeds up

18 May 2012 | Liz Alderman

PRINT: 18 May 2012 | PAGE 2 | Euros flee Greece at rapid rate

As Greek political leaders assembled a caretaker government to usher in new elections next month, bankers across Athens were monitoring a worrying development: the continued flight of billions of euros from the country amid renewed concern over Greece’s fate within the euro currency union.

Profit up 3pc but CBA braces for Greece backlash

18 May 2012 | George Liondis

PRINT: 18 May 2012 | PAGE 1 | Greek turmoil to drive up funding costs, says CBA chief

Commonwealth Bank of Australia has revealed it was forced to make contingency plans in case of Greece’s exit from the euro as the debt-rattled country’s political crisis sends shockwaves through world markets.

Nikkei ends up 0.9pc as investors hunt bargains

17 May 2012 |

The Nikkei share average rose 0.9 percent on Thursday as upbeat Japanese economic growth data trumped worry about Europe and investors shopped for bargains after Wednesday's market tumble left the benchmark down 14 percent this quarter.

HSBC cuts costs by target $US2bn

17 May 2012 |

HSBC CEO Stuart Gulliver said in a strategy update on Thursday that Europe's biggest bank is still on track to meet his return on equity (RoE) target of above 12 per cent.

JPMorgan disaster puts focus on fat tail risk

PRINT: Capital | 10 May 2012

Jamie Dimon’s failed quest for the perfect hedge against tail-risk led him to abandon all the traits that investor Warren Buffet admired in him.

JPMorgan hit with shareholders' lawsuit

PRINT: Capital | 17 May 2012

US fund manager Saratoga Capital Management has filed a class-action lawsuit against JPMorgan Chase after the nation's largest bank lost more than $US2 billion in derivatives trading.

Greece fears hit funding costs: CBA

17 May 2012 | George Liondis

PRINT: 18 May 2012 | PAGE 1 | Greece fears hit funding costs: CBA

Commonwealth Bank of Australia has revealed it was forced to make contingency plans in case of Greece’s exit from the euro as the debt-raddled country’s political crisis sends shockwaves around world.

Credit Suisse’s Sim departs as global head of M&A

PRINT: Capital | 17 May 2012

The global head of mergers and acquisitions at Credit Suisse, Boon Sim, is leaving to take a senior position at Temasek, Singapore’s sovereign wealth fund.

JPMorgan ‘whale’ trader seen leaving: report

17 May 2012 |

Updated | Bruno Iksil, the JPMorgan trader known as the “whale” believed involved in the $US2 billion trading loss, is no longer trading and is expected to go by year’s end.

FBI confirms preliminary probe into JPMorgan

17 May 2012 |

FBI Director Robert Mueller on Wednesday confirmed that the agency has opened a “preliminary investigation” into JPMorgan Chase & Co, the nation’s largest bank.

ECB cuts Greek bank funding

17 May 2012 | Ben Woodhead

Updated | The European Central Bank has stopped providing liquidity to some Greek banks as they have not been successfully recapitalised, euro zone central bank sources have said.

JPMorgan case opens old wounds

17 May 2012 | Justin O’Brien

PRINT: 17 May 2012 | PAGE 2 | JPMorgan case opens old wounds

The travails facing JPMorgan have proved an exceptionally useful pulpit to promote Elliot Spitzer’s blend of moral outrage, personal interest and structural reform.

Dimon in the rough

17 May 2012 |

PRINT: 17 May 2012 | PAGE 64 | Dimon in the rough

Crony capitalism in America is not a patch on the nonpareil art form practised in, say, the former Soviet Republics.

Property briefs

17 May 2012 |

PRINT: 17 May 2012 | PAGE 3 |

The Glad Group, one of Australia’s leading providers of property services, yesterday opened its $7 million Australian headquarters, and national operations centre, in Rockdale in Sydney’s south.

Banks fund offshore investors

17 May 2012 | Matthew Cranston

PRINT: 17 May 2012 | PAGE 3 | Banks fight to fund investors

Australia’s big four banks have increased their exposure to commercial property by $3.8 billion in the last six months as they fight to fund major offshore investors who are increasingly dominating the real estate market.

Commonwealth looking slimmer at the margins

17 May 2012 | George Liondis

PRINT: 16 May 2012 | PAGE 3 | Commonwealth slimming at the margins

Commonwealth Bank of Australia is set to be the next major lender to be hit with the high cost of deposits, as analysts warn of falling profit margins.

Company briefs

17 May 2012 |

PRINT: 17 May 2012 | PAGE 28 |

Grocery wholesaler Metcash is entering into joint ventures with independent retailers to protect and expand the market share of hardware chain Mitre 10.

JPMorgan’s $2bn loss extraordinary: ANZ chief

17 May 2012 | John Kehoe

PRINT: 17 May 2012 | PAGE 3 | JPMorgan’s $2bn loss extraordinary, says ANZ chief

ANZ Banking Group chief executive Mike Smith has labelled JPMorgan’s $US2 billion trading loss as “extraordinary”.

Nikkei ends down 1.1pc on China data

16 May 2012 | Reuters

The Nikkei share average slid 1 per cent on Wednesday, as data showing flat bank lending in China chilled already tepid sentiment for risk assets although the benchmark managed to end a whisker above a key support level.

Home appliance sales boosted

16 May 2012 |

China plans to subsidise energy-efficient home appliances to boost sluggish sales of home appliances.

Carlyle’s profit falls in first quarter

PRINT: Capital | 16 May 2012

In its first earnings report as a public company, the Carlyle Group reported a 26 percent drop in profit but it said it saw growth in its investments and plenty of opportunities for deal-making.

Regulators should enforce firewalls

16 May 2012 |

US regulators should use JPMorgan Chase’s $US2 billion hedging loss as a spur to take the law into their own hands, says the former chairman of the FDIC.

Notebook: ring-fencing the banks’ risky business

16 May 2012 | Bloomberg View

PRINT: 16 May 2012 | PAGE 62 | NOTEBOOK Ring-fencing the banks’ risky business

JPMorgan’s $2 billion trading loss has unleashed a whirlwind of commentary on how (and how not) to regulate the financial system.

Comptroller scrutinises JPMorgan’s transactions

16 May 2012 | Cheyenne Hopkins

PRINT: 16 May 2012 | PAGE 51 | Scrutinising the losses

The Office of Comptroller of the Currency says it is examining JPMorgan Chase’s activities and evaluating their transactions following a $US2 billion loss that shook up bank leadership.

Company briefs

16 May 2012 |

PRINT: 16 May 2012 | PAGE 21 |

Alternative exchange operator Chi-X Australia says its market share has broken through 3 per cent for the first time.

Berkshire takes stakes in GM, Viacom

16 May 2012 |

Berkshire Hathaway added new positions in auto maker General Motors and media conglomerate Viacom in the first quarter and cut its stake in chipmaker Intel by 33 per cent.

FBI probes JPMorgan trading losses

16 May 2012 | David Henry

The FBI has opened a probe into trading losses at JPMorgan Chase & Co, stepping up the pressure on the bank after wrong-way bets led to more than $US2 billion in losses.

National briefs

16 May 2012 |

PRINT: 16 May 2012 | PAGE 5 |

Consumer advocate Delia Rickard will take on the role of deputy chairman of the Australian Competition and Consumer Commission for five years from June 4, following her formal appointment by the Governor-General.

Rate cut could be trigger

16 May 2012 |

PRINT: 16 May 2012 | PAGE 2 | Rate cut could be trigger

With so much uncertainty surrounding Europe and in particular question marks over the Greek government, volatility in sharemarkets is likely to continue in the near term. But the recent rate cut by the Reserve Bank of Australia could be a trigger for the domestic cyclicals.

Pipeline popularity contest

16 May 2012 | Tony Boyd

PRINT: 16 May 2012 | PAGE 1 | Pipeline popularity contest

Whatever way you look at it, Alan Cameron from Hastings Funds Management is a winner from the proposal by Pipeline Partners Australia.

US tax law a threat to financial sector

16 May 2012 | Ruth Liew

PRINT: 16 May 2012 | PAGE 2 | US tax law a threat to financial sector

A new US tax law that could Australian financial services firms hundreds of millions of dollars is arguably the first of many more to come from around the world, warns financial technology outsourcing giant, CSC.

Nikkei ends down 0.8pc on Greece fears

15 May 2012 |

Japan's Nikkei share average fell to a 3½-month closing low on Tuesday, weighed down by exporters with exposure to Europe after Greece struggled to form a coalition government, increasing fears that it may have to leave the euro zone.

ANZ to pump $300m into China business

15 May 2012 | Ruth Liew

PRINT: 16 May 2012 | PAGE 3 | ANZ to spend $300m on China

ANZ Bank has flagged plans to pump $300 million into its China business to fuel further growth in the world’s most populous country.

Drop in cheque users presents challenges

15 May 2012 | Ruth Liew

The number of cheque users in Australia is plummeting, and a new plan has been drawn to manage the decline across the country’s payments landscape.

Argus gets BoAML offer

15 May 2012 | Joyce Moullakis

PRINT: 16 May 2012 | PAGE 1 | Argus gets BoAML offer

Fast track | Bank of America-Merrill Lynch has invited Don Argus to join a new global advisory board to be established in the coming months.

Video | The Bassanese Report

15 May 2012 |

David Bassanese looks at the RBA minutes and whether further cuts are imminent, as well as the global economic outlook.

Aussie banks sturdy as credit markets turn dark

PRINT: Capital | 15 May 2012

Analysis | Capital delves into some key charts to explain why Australian bank bonds are holding up well in the face of a possible Greek exit from the Euro, and why they are turning their attention to local retail bond investors.

Moody’s sword hangs over Europe

15 May 2012 | Glenn Mumford

PRINT: 15 May 2012 | PAGE 4 | Moody’s sword hangs over Europe

We know it might get messy, but the euro zone will survive without Greece. It won’t if it loses its banks.

Video | Chanticleer: JP Morgan

15 May 2012 |

JP Morgan’s $2 billion trading loss cost hedge funds dearly. Chanticleer columnist Tony Boyd looks at the failure of the bank’s risk management strategies.

RBA’s Parkinson boosts rate-cut hopes

15 May 2012 | Jacob Greber

PRINT: 16 May 2012 | PAGE 3 | RBA insider backs rate-cut speculation

Treasury secretary Martin Parkinson has stoked speculation the central bank may cut rates if the economy weakens.

US regulation debate a ‘banking hell’

15 May 2012 | Ben Potter

America is having the wrong debate over bank regulation, arriving at the wrong conclusions, and doomed to several more years of trying to get it right, a bank analyst warns.

Loan rangers set to ride as banks retreat

PRINT: Capital | 16 May 2012

Industry Fund’s Management’s head of debt investments, Robin Miller, says there’s an upside for investors in the credit markets, including in infrastructure

Fed examining other risks being taken by JPMorgan

15 May 2012 |

The US Federal Reserve is examining whether JPMorgan Chase & Co is taking risks elsewhere in the bank similar to the botched trading strategy that could cost the bank more than $US2 billion.

Obama says JPM loss validates Wall St reform need

15 May 2012 |

President Barack Obama said on Monday the huge trading loss at JPMorgan Chase & Co, one of the best managed banks there is, illustrated the need for Wall Street reform.

Will JPMorgan claw back pay?

PRINT: Capital | 15 May 2012

The question now is whether JPMorgan will invoke its newly implemented clawback policy to penalise three executives who are leaving after the $US2 billion trading loss.

European Parliament panel backs cap on bank bonuses

15 May 2012 |

Bonuses for bankers in the European Union must not top basic salaries, a panel of EU lawmakers says, putting pressure on member states to back some of the world’s toughest curbs on pay packages.

JPMorgan says Drew retires, Zames to succeed

15 May 2012 |

JPMorgan Chase & Co chief investment officer Ina Drew is retiring, the first casualty after the bank suffered trading losses that could reach more than $US3 billion.

Heads should roll at JPMorgan

15 May 2012 | Tony Boyd

PRINT: 15 May 2012 | PAGE 1 | Heads should roll at JPMorgan

Read the transcript of Jamie Dimon’s mea culpa to analysts for losing $US2 billion in a risk management hedging strategy at JPMorgan Chase and you will find arrogance oozing out all over the place.

JPMorgan makes mockery of Fed

15 May 2012 | Lindsay Byrnes

PRINT: 15 May 2012 | PAGE 53 | JPMorgan makes mockery of Fed

JPMorgan’s latest revelations it managed to lose $US2 billion in risky synthetic credit securities turns sour any notion they are following reasonable banking practices and makes a mockery of the recent stress testing of financial institutions by the US Federal Reserve.

Barnes to leave CBA

15 May 2012 |

PRINT: 15 May 2012 | PAGE 2 |

Peter Barnes, head of property for Commonwealth Bank’s institutional banking and markets, will step down on June 30.

Brogden fights to avoid 30pc US tax on super

15 May 2012 | John Kehoe

PRINT: 15 May 2012 | PAGE 22 | Brogden fights to avoid 30pc US tax on super

Financial Services Council chief John Brogden is in the US to make a last-ditch bid for super funds to be carved out of laws that threaten to impose a 30 per cent withholding tax on financial institutions.

Borrowers flock to fix home loans

15 May 2012 | John Kehoe

PRINT: 15 May 2012 | PAGE 13 | Borrowers flock to fix mortgages

Fixed home-loan rates have reached their highest level of popularity in four years, as home borrowers lock in to the certainty of lower rates.

Global Mining Investments (GMI)

14 May 2012 | Ruth Liew

PRINT: 15 May 2012 | PAGE 35 |

Listed investment company Global Mining Investments has flagged plans to de-list from the ASX after trying unsuccessfully to narrow its stock’s discount to asset value.

Credit Agricole has contingency for Greek exit

14 May 2012 |

Credit Agricole, one of France’s top banks, acknowledges it is working on contingency plans in case Greece abandons the euro as its currency.

JPMorgan trading chief set to resign

14 May 2012 |

The $US2 billion trading loss at JPMorgan Chase will claim its first casualty among top officials at the bank as early as Monday, with chief executive Jamie Dimon set to accept the resignation of the executive who oversaw the trade, Ina Drew.

Banking’s last man standing buckles under JPMorgan loss

14 May 2012 | Ben Potter

PRINT: 14 May 2012 | PAGE 57 | Banking’s last man standing buckles under JPMorgan loss

It is one of the most spectacular own goals in banking since the financial crisis. Three years ago Jamie Dimon emerged as head of the largest bank on Wall Street and industry leader in the fightback against new regulations.

Narev bets on smart banking

14 May 2012 | Michael Smith

PRINT: 14 May 2012 | PAGE 60 | Narev bets on smart banking

Technology is the buzzword in banking at the moment. In a world where you can exchange cash by bumping two smartphones together, chequebooks are gathering dust in drawers and it is rare to see anyone under 30 in a bank branch.

Chief looks for talent in his own mould

14 May 2012 | Michael Smith

PRINT: 14 May 2012 | PAGE 60 | Chief looks for talent in his own mould

Like any new chief executive Ian Narev is eager to put his stamp on the bank’s senior management ranks.

Reserve cut a sign Beijing dropped policy ball

14 May 2012 | Robert Guy

PRINT: 14 May 2012 | PAGE 5 | Beijing’s

Guy | China’s leadership has turned to a tried and trusted policy lever in a bid to revive flagging growth, but the old play book may not be effective.

Battle front moves to deposits

14 May 2012 | Andrew Cornell

PRINT: 14 May 2012 | PAGE 4 | Battle front moves to deposits

The intensifying battle for deposits involves a double-edged sword for the banks and politicians.

Investa goes its own way on common terms syndicate

14 May 2012 | Sally Rose

PRINT: 14 May 2012 | PAGE 1 | Investa goes it own way on common terms syndicate

Updated | Instead of employing a lead banker to arrange and underwrite refinancing, a property group CFO has taken the unusual step of negotiating its own panel of lenders.

RBS expects its usual pay ‘ding-dong’

14 May 2012 | Louisa Peacock

PRINT: 14 May 2012 | PAGE 4 | RBS expects usual pay ‘ding-dong’

British investors may well be in the midst of a revolution against poorly performing companies and fat-cat pay, but the current investor uprising doesn’t appear be fazing Sir Philip Hampton.

Aussie bankers are hot property abroad

14 May 2012 | John Kehoe

PRINT: 14 May 2012 | PAGE 4 | Australian bankers: hot property abroad

The Australian banking market has become a favourite source of human capital for overseas banks looking to add to their executive ranks.

Westpac cautions on slow return of Europeans

14 May 2012 | John Kehoe

PRINT: 14 May 2012 | PAGE 22 | Westpac cautions on slow return of Europeans

Westpac institutional boss Rob Whitfield does not believe European banks are returning to the Asian and Australian markets as much as comments by ANZ chief executive Mike Smith suggest.

Big four in battle for corporate business

14 May 2012 | John Kehoe

PRINT: 14 May 2012 | PAGE 3 | Big four in battle for corporate business

Australia’s major banks are talking up the war on deposits. But there is another war going on under the radar between our biggest lenders – in the transactional arena.

Some days are Dimon’s, some are stone

14 May 2012 | Alistair Osborne

PRINT: 14 May 2012 | PAGE 1 | Some days are Dimon’s, some days are stone

He was once the Wall Street banker the president turned to, but now JPMorgan chief Jamie Dimon finds himself beached by the bank’s hedging division.

JPMorgan’s CIO an ‘accident waiting to happen’

14 May 2012 | Harry Wilson

PRINT: 14 May 2012 | PAGE 1 | CIO an ‘accident waiting to happen’

Senior executives at JPMorgan were given repeated warnings about the controversial unit responsible for a shock $US2 billion trading loss at the bank.

JPMorgan’s loss boosts case for action

14 May 2012 | Phil Mattingly

PRINT: 14 May 2012 | PAGE 1 | JPMorgan’s loss boosts case for action

US politicians and interest groups seeking tighter restrictions on proprietary trading say JPMorgan Chase’s $US2 billion loss on synthetic credit securities bolsters their case.

Fitch cuts JPMorgan rating

14 May 2012 | Michael Moore

PRINT: 14 May 2012 | PAGE 1 | Rating cut one notch

JPMorgan Chase had its credit grade lowered one level by Fitch Ratings and Standard & Poor’s said it may follow after the bank revealed a $US2 billion trading loss.

Creditors to vote on MF Global debt

14 May 2012 | John Kehoe

PRINT: 14 May 2012 | PAGE 12 | Creditors to vote on MF Global debt

Investors may be able to sell MF Global accounts if creditors vote in favour of the move, and distressed debt specialists have made inquiries about buying positions.

Back off, Queensland tells banks

14 May 2012 | Mark Ludlow

PRINT: 14 May 2012 | PAGE 3 | Back off, Qld tells banks

Queensland Treasurer Tim Nicholls has accused the nation’s banks of pushing more companies to the wall amid a sharp rise of insolvencies earlier this year.

House prices may fall further: NAB

14 May 2012 | John Kehoe

PRINT: 14 May 2012 | PAGE 1 | Further house price falls tipped

National Australia Bank chief executive Cameron Clyne says house prices could decline further, but he expects the Reserve Bank of Australia to cut interest rates by another 0.50 of a percentage point this year.

China cuts bank reserves to boost economy

13 May 2012 |

China's central bank cut the amount of cash that banks must hold as reserves on Saturday, pumping out more funds that could be used for lending to head off sharper slowdown in the world's second-largest economy.

S&P revises JPMorgan outlook to ‘negative’

12 May 2012 |

Standard & Poor’s Ratings Services revised its outlook on JPMorgan Chase & Co on Friday to negative from stable, the latest blow to the bank.

JPMorgan’s shares, rating and reputation hit hard

12 May 2012 |

JPMorgan Chase & Co lost $US15 billion in market value and a notch in its credit ratings on Friday while a chorus of regulators and politicians reacted to its surprise $US2 billion trading loss.

Guggenheim, Deutsche Bank asset talks falter

12 May 2012 |

Guggenheim Partners’ talks to buy a full range of asset management businesses from Deutsche Bank for €1.4 billion have fallen apart, a source familiar with the situation said.

Fitch downgrades JPMorgan’s credit rating

12 May 2012 |

Crisis-hit US bank JPMorgan Chase has received a credit rating downgrade from Fitch, a day after the bank revealed a $US2 billion trading loss.

Banks prepare for return of the drachma

12 May 2012 |

Some banks never erased the drachma from their systems after Greece adopted the euro and would be ready at the flick of a switch if its debt problems forced it to bring the currency back to life.

French lessons

12 May 2012 |

PRINT: 12 May 2012 | PAGE 56 | French lessons

Well, excuse my French, but Tony Abbott could be onto something with this language thing.

Carried away with Kelly

12 May 2012 | Andrew Cornell

PRINT: 12 May 2012 | PAGE 3 | Carried away with Kelly

The fickle herd are no longer sniffing at Westpac’s Gail Kelly but giving her a clap.

Couple paying off a mortgage

12 May 2012 |

PRINT: 12 May 2012 | PAGE 2 | Rates outlook a reason to smile

Lara and Alan Goode are thrilled the budget surplus could lead to lower interest rates.

Business briefs

12 May 2012 |

PRINT: 12 May 2012 | PAGE 2 |

A joint venture between the Singapore Exchange and Chi-X Global will shut its doors because of poor trading volumes.

JPMorgan chief called to account

12 May 2012 | Ben Potter

PRINT: 12 May 2012 | PAGE 1 | JPMorgan boss called to account

JPMorgan will have to explain how its renowned risk-management systems failed to prevent a $US2 billion loss on a hedge gone wrong, giving regulators ammunition in their push to enforce the Volcker rule.

Bank fees class action goes to High Court

12 May 2012 | Claire Stewart

PRINT: 12 May 2012 | PAGE 1 | Fees case to

The largest class action case in Australian history will be resolved sooner than expected.

Achilles heel leaves egg on Dimon’s face

12 May 2012 | Phil Baker

PRINT: 12 May 2012 | PAGE 14 | Achilles heel leaves egg on Dimon’s face

Although he forged a reputation as a saviour of the industry during the global financial crisis and was once named the “least hated banker in the world” by The New York Times, it seems Jamie Dimon has put enormous faith and trust in one person that has left him exposed.

JPMorgan loss is Dimon own goal

11 May 2012 | Glenn Mumford

PRINT: 11 May 2012 | PAGE 2 | JPMorgan $2bn loss is Dimon own goal

To his credit, JPMorgan Chase chief Jamie Dimon didn’t sugar coat his bank’s $US2 billion trading loss.

High Court to hear bank fee challenge

11 May 2012 |

The High Court will hear a class action by customers of the ANZ Bank alleging it charged excessive fees for overdrafts, overdrawn accounts, dishonour fees and over-the-limit credit card accounts.

Banks put on notice by APRA over loans

11 May 2012 | Andrew Cornell

PRINT: 11 May 2012 | PAGE 1 | Banks put on notice by APRA

The banks and other mortgage lenders have been challenged to better understand the ability of customers to repay their loans as the prudential regulator opens a new front on loan affordability.