AMP - AMP Limited

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Next topic for the Commissioner should be a probe into the ubiquitous insurance policies being spruiked by TV commercials and cold calls. You know there is something fishy going on and the public is being fleeced when they can afford to fork out $Millions for saturation advertising of funeral, life, pet ... insurance.
Crooks and fraudsters, the lot of them!

 

[Gringotts Bank]

I expect a [short term] bounce off current levels - 4.07. Even if it fails, dead cats do bounce at some point and volume is coming in much heavier today.

Main reason - the next support at 3.50 is miles away.

 

[tech/a]

GB

Why would you think that an old support would be honoured in a situation like this.
This is extra ordinary and in my view a black swan event for the sector as a whole.

Anything short Id be very confident in!

 

[Toyota Lexcen]

This is all info the government has had for many years.

Calls are already happening for current ASIC people to be removed.

 

[tech/a]

This is all info the government has had for many years.

Calls are already happening for current ASIC people to be removed.

ASIC have been and still are Toothless until the fines and jail terms hurt
you'll always have people looking after their own interests in front of their client.
A few million for a bank is like a couple of $$s for you and I.

Unfortunately for many its just a cost of doing business. (The Millions in fines)!

 

[Knobby22]

ASIC have been and still are Toothless until the fines and jail terms hurt
you'll always have people looking after their own interests in front of their client.
A few million for a bank is like a couple of $$s for you and I.

Unfortunately for many its just a cost of doing business. (The Millions in fines)!

There are jail terms in the legislation but a deal is always done which results in an ""independent"" report, a promise to fix it and a fine to ASIC which runs the organisation. They will have to throw a few people in jail to clean it up.

 

[So_Cynical]

Seems to be support at around $3.75.

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AMP one of many "big" stocks that has gone basically nowhere for a decade, QBE, CCL, BHP, RIO, ORG, TLS, GNC, STO, SGP. none of them sideways in a straight line so money to be made but a terrible buy and hold outcome for many average investors.
`

 

[Joules MM1]

overkill ? ..probably.....bargain area? .....probably

 

[peter2]

Is this a good time for a buy-out/take over?

 

[Gringotts Bank]

There are jail terms in the legislation but a deal is always done which results in an ""independent"" report, a promise to fix it and a fine to ASIC which runs the organisation. They will have to throw a few people in jail to clean it up.

Rich people never go to jail, unless they have upset a few other rich people along the journey. One of life's rules.

 

[Garpal Gumnut]

Is this a good time for a buy-out/take over?

Many punters from the old days recommended buying AMP at $4 and selling at $7.

It's an old trading range going aways back.

If you have the cohunas the answer is yes. If not the answer is no.

It all comes down sometimes to being contrarian or not.

gg

 

[Toyota Lexcen]

Yes peter2.

I guess only private equity now or another bank (not “big4”) that operates here in Aus.

But the regulation which is destroying Aus companies is a big problem and private equity may avoid AMP.

Very few mergers, acquisitions with stocks still well off highs.

 

[greggles]

More bloodletting at AMP. Chairwoman Catherine Brenner has stepped down, days after the company's CEO Craig Meller also resigned.

It's going to take a while before the dust from this Royal Commission has settled and the banking sector is not the place I would be looking for bargains at any time in the near future.

 

[pixel]

Rich people never go to jail, unless they have upset a few other rich people along the journey.

... or unless they're considered nouveaux riches by their peers, who believe money stolen by their parents or grandparents becomes legitimately theirs by inheritance.
But even for an Alan Bond, it's a couple of years R & R for $1Billion deemed wrongfully gained. And in Queensland, his name continues to be honoured by the Bond University.

 

[Darc Knight]

Keeps on happening, changing of the deck chairs. But is it just scapegoating or people resigning to take the "rap" for the Company while a rotten culture still remains?

 

[Joules MM1]

"($1 = 1.3201 Australian dollars)
SYDNEY (Reuters) - Australia’s largest-listed wealth manager AMP announced the resignations of its chairwoman and legal counsel on Monday, and slashed its directors’ fees by a quarter as it races to stem the fallout from damaging revelations of misconduct at the firm.
The exits follow disclosures at a judicial inquiry into the country’s financial sector that AMP misled many customers and deceived the corporate regulator. The scandal has already caused the early departure of CEO Craig Meller, who was due to leave by year end, and analysts expect more heads will roll.

Chairwoman Catherine Brenner and group General Counsel Brian Salter will depart immediately, AMP said in a statement.

Mike Wilkins, a former independent director who has been named both interim chairman and CEO, said the evidence given to the government-backed Royal Commission is “being treated extremely seriously by the board”.

“Appropriate steps are being taken to address the issues raised, and remediating our customers is being given utmost priority,” he said.

AMP, which is also staring at a possible class action, has seen around A$2.2 billion ($1.7 billion) wiped off its market capitalization over the past two weeks in the wake of the revelations. It was valued at A$11.6 billion at Friday’s close.

The inquiry was told that advisers at AMP misappropriated funds of thousands of clients over the last decade by charging them without providing advice, and that it had repeatedly lied to the Australian Securities and Investments Commission (ASIC).

Counsel assisting the inquiry said on Friday that AMP had breached provisions of the Corporations Act that carry criminal sanctions.

Brenner, Salter and Meller were singled out by the inquiry as part of a group of senior executives that allegedly modified a report by law firm Clayton Utz and submitted it to the regulator in late 2017 as “external and independent”.

Their intention was to limit the report’s findings about the involvement of AMP’s senior executives in misappropriating customer fees, the inquiry heard.

AMP said in its statement that Brenner, Meller and the other directors “did not act inappropriately in relation to the preparation of the Clayton Utz report”.

The statement did not comment on Salter’s behavior.

REMUNERATION CONSEQUENCES
The company said it would make a formal submission in response to the allegations raised at the commission by May 4.

The “employment and remuneration consequences” for individuals who were responsible for charging fraudulent fees will be determined once an external employment review is completed, which is expected shortly, it said.

AMP added that it would slash fees for board directors by 25 percent for the rest of 2018 as a recognition of the “collective governance accountability for the issues raised in the Royal Commission and for their impact on the reputation of AMP”.

AMP has already started searching for a new CEO, and will fast track the selection of a new chair to “help ensure stability and further strengthen governance”, Wilkins said.

David Ellis, an analyst at Morningstar, said it was likely more executives and board members would leave in coming weeks.

“All bets are off,” Ellis said. “With a new CEO and a new board, the future strategy could be completely different.”

AMP is currently staring at a possible shareholder class action, with litigation financier IMF Bentham Ltd saying it plans to fund one against the wealth manager regarding alleged misconduct as revealed by the commission.

An AMP spokeswoman declined to comment on the proposed class action.

The Royal Commission is just a couple of months into what is expected to be a year-long investigation. The inquiry will be able to make wide-ranging recommendations including legislative changes and on criminal or civil prosecutions.

Business News
April 30, 2018 / 7:59 AM / Updated 5 hours ago
Australia banking scandal claims more AMP scalps, chairwoman quits
Paulina Duran

 

[luutzu]

These are extreme times for the banking sector and of course AMP.
I would not be attempting to trade anything remotely involved negatively in the royal commission---technically or other wise.

I'm betting the Aussie banks will have a Wells Fargo azz whopping soon.

I personally know of two (elderly) people they've sold insurance to, charged them premiums on it... and they swear they do not remember asking, or need to, purchase the insurance.

 

[Joules MM1]

Former Commonwealth Bank boss David Murray joins AMP as Chairman
Business 17 minutes ago
AMP announced former Commonwealth Bank boss David Murray would be joining the financial services company as Chairman. It comes after the departure of former Chair Catherine Brenner, who stood down in the…
https://twitter.com/i/moments/992297682256318465

 

[Knobby22]

Good choice. David Murray will command a lot of respect.

 

[greggles]

AMP is trading higher today (up 2.5%) from a trading range of 5.20/5.35 up to 5.69.

The above quote is from the first post in this thread, dated 7 August 2004. AMP was trading significantly higher back then, almost fourteen years ago. In 2001 it was trading (albeit briefly) at $22.

Here's some long term perspective on AMP in the form of a 20 year weekly chart. Surely this company must qualify as one of Australia's biggest large cap dogs.