• Australian (ASX) Stock Market Forum

Market Won't Punish CBA: Royal Commission Should

Discussion in 'General Chat' started by Garpal Gumnut, Aug 9, 2017.

  1. Garpal Gumnut

    Garpal Gumnut

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    Since the publication of the news of CBA aiding and abetting terrorists and criminals to launder billions of dollars over a 2 year period, there has been bugger all punishment by the market of the Banks.

    During the 80's and 90's the Banks sent many Australians broke with dodgy loans and cruel interest rates.

    Push your MP's and particularly your Senators to have a Royal Commission in to Banks.

    This news from CBA is just the tip of the iceberg, I'm guessing.
     
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  2. PZ99

    PZ99 ( ͡° ͜ʖ ͡°)

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    The Govt should punish CBA with compulsory acquisition...

    An acquired $140billion asset offsetting a $300billion Govt debt sounds like a goer to me :)

    awmlpic1.jpg
     
  3. Garpal Gumnut

    Garpal Gumnut

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    For y'all who are silent and holding on to your bank shares, you are responsible for not punishing CBA for it's behaviour.

    When one day soon they drop by 20-30% or more in one day don't say you weren't warned. The institutions are not stupid, I believe they are propping up the price for the big sell.

    From today's Australian, just one tiny example of the funny business CBA was involved in along with other banks.

    gg


    The Australian Aug 9, 2017

    Routine traffic stop brought money launderer undone.

    According to documents tendered to the NSW District Court, “some money” was $65,000 wrapped in seven bundles and kept in a grey plastic bag. Singh told police he was on his way to deliver it to an unknown person in the Westfield Parramatta carpark. Police found another $20,000 under the driver’s seat.


    Before searching Singh’s home in Mount Druitt, police placed it under surveillance and saw a woman leave with a plastic bag, carry it to another house on the street and return without it five minutes later.


    When police located it, it held a shoebox with $235,300 in cash.


    Singh, a small cog in a larger web of international money-laundering, was ultimately convicted and sentenced in June to 20 months’ jail for structuring banking deposits to avoid reportable threshold limits under the Anti Money Laundering and Counter Terrorism Financing Act. He took his instructions from an Indian in Dubai called Jagmohan and, at least once, acted on behalf of a money exchanger in Iran. “Yes, before I have deposited money into the accounts for him (Jagmohan) and I have given money to different peoples on his instructions as well,” Singh told police.


    Typically, he would take $200 to $300 from the bundles as his commission. In total, he made 123 transactions worth $739,518 that broke money-laundering laws, $273,432 of this through the CBA.


    The Australian Transactions Reports and Analysis Centre filed a statement of claim in the Federal Court alleging the bank failed to report more than 53,000 suspicious transactions deposited into intelligent deposit machines and in person at bank branches.


    NSW police first wrote to the CBA in relation to Singh on March 20, 2015, almost three years after the bank first noticed high-value transactions in one account.


    After issuing a suspicious matter report, it declined to report anomalous activity in the form of a $65,000 deposit on August 18, 2012, because it had already raised the alarm.


    Almost a month after being told Singh had been charged in relation to some of its accounts, the CBA received a manual suspicious matter report on one of these accounts because a man had made two deposits of $5000 each.


    Despite police advice and the manual alert, the bank’s anti-money-laundering team noted “no other suspicious activity found” in the seven days before and after the flagged deposit.


    Austrac was never informed of the new issue with the account.


    Singh and one of his associates didn’t just hit the CBA, however, and were recorded on security cameras making deposits at Westpac branches in Seven Hills, Wentworthville and Westmead as well as St George Blacktown and an NAB branch at Rouse Hill.


     
  4. Garpal Gumnut

    Garpal Gumnut

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  5. Smurf1976

    Smurf1976

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    I'm not arguing that you're wrong or right there as I really don't know, but if it does happen then I wouldn't be surprised to see other banks similarly sold off.

    As most are all too aware, if you happen to actually see one rat then usually that means there's a lot more that haven't been noticed yet. It's possible the other banks all have everything in order but it's also possible that CBA is simply the one who got caught first.

    With banks such a significant component of the major indices it's virtually impossible for the indices to not go down if the banks go down to considerable extent. The only real way around that would be if mineral prices just happened to boom at the exact same time and push the mining stocks up but the odds of that happening at the same time are fairly remote I think.:2twocents
     
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  6. SirRumpole

    SirRumpole

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    That is what is holding back a Royal Commission imo, the fear that all the dirty secrets will come out and the public will lose faith in the banks.

    On the other hand, getting it all cleaned up and having more transparency will in the long run restore trust in the banks.

    A RC may have short term negative ramifications, but long term things will be better.
     
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  7. Garpal Gumnut

    Garpal Gumnut

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    The political aspect is not to be ignored.

    The Coalition and ALP do not want a Royal Commission in to banks, as many of them have sinecures with them e.g. Anna Bligh.

    The Katter Party, One Nation, That Greek/Australian bloke from South Australia's Party, and the Greens will be all on for a Royal Commission, as well as Hinch if he is awake on the day.

    Elections loom.

    The bell tolls for a Royal Commission.

    gg
     
  8. PZ99

    PZ99 ( ͡° ͜ʖ ͡°)

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    The ALP have been pushing for an RC since last year but....

     
  9. Toyota Lexcen

    Toyota Lexcen

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    is an aggrieved customer someone who pays fees?

    just bank bashing
     
  10. SirRumpole

    SirRumpole

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    I doubt if the customers were aware of the money laundering so they can't complain about something they don't know of.

    An RC will get to all the dirty tricks that the banks desperately hide from their customers.
     
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  11. PZ99

    PZ99 ( ͡° ͜ʖ ͡°)

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    Money laundering is a small player in the bank scandals of the past several years.
    Think Comminsure for one example. It's not just bank bashing.

    The reality is an RC should've been held years ago, but this Govt was too busy sooking about unions (just one fifth of the workforce).

    There's a reason why the ALP called for an RC on banks last year, and it wasn't because of what happened last week.
     
  12. Toyota Lexcen

    Toyota Lexcen

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    watch this thread run
     
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  13. Garpal Gumnut

    Garpal Gumnut

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    I should remind posters of the heinous abrogation of governance by the CBA .....Commonwealth Bank of Australia recently.

    1. CBA ran a drop off point for money laundering.
    2. The CBA facility was used by people associated with ISIS or other Middle Eastern Terrorists.
    3. The CBA drop off points were also used by high level drug dealers, domestic and international.
    3. CBA knew this was happening for some time.
    4. CBA did nothing to prevent this until reported recently by AUSTRAC.

    And the share price rose today !!

    If the Market believes in CBA we need a Royal Commission otherwise the whole of the ASX/XAO is a suspect Ponzi.

    gg
     
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  14. john5

    john5

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    the market believes in cba because it believes cba have gotten away with it, aka too big to jail
     
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  15. No Trust

    No Trust

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    The banks need to be regulated and those responsible punished...

    Remember the foreign currency loans in the 80's that killed so many Australians ? Only those with enough brass who sued the banks received any compensation. The others were destroyed...



     
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  16. basilio

    basilio

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    I agree with your sentiments GG. It appears however that the CBA, the big banks in general and their CEO's are "too big too touch". On the face of it the negligence and the subsequent refusal to acknowledge how their product was being used by criminals/terrorists could make the bank and those responsible accessories to their behaviour.

    To be fair this isn't news in the banking world. Tax evasion through offshore accounts has been rife. Fines have been levied and paid but I don't believe any bank officials have paid a personal price for their complicity.

    But who wants to pull the critical piece out of the Jengo block?
    In real politik the questions will be "What will be the economic and business consequences of fearlessly following the justice trail ?" And the bank itself will push back privately on any accusations with that very strong message.

    http://www.telegraph.co.uk/business...entre-international-tax-evasion-probe-linked/
     
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  17. Value Collector

    Value Collector

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    How exactly is selling your shares "punishing the banks"?

    All you are doing is selling your shares to another investor, there is no net effect, simply switching one owner for another.

    Investors as owners can switch out management, that would be a more effective way of using your power a stock a shareholder to "punish" the wrong doers.
     
  18. Garpal Gumnut

    Garpal Gumnut

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    I'm a chartist.

    Generally when there are more sells than buys a stock falls in price putting pressure on the board and executives.

    The Instos if I were them are selling as we speak, manipulating the price so that the mums and dads stay with the stock.

    I still predict a catastrophic repricing down of bank stocks, particularly CBA.

    Watch all the CXXT trades on the ticker over the next few weeks as the Fund managers play get out at the top.

    gg
     
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  19. basilio

    basilio

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    I wonder if some traders will decide to go short on CBA if they think the instos will be quietly exiting ?
     
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  20. Tisme

    Tisme Apathetic at Best

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    When investment turns into a gamble
     
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