There is a good chance that the long term impact of this royal commission will be a complete dismantling of bank business models. As I pointed out yesterday, banks are already starting to put their funds management businesses up for sale. Next, the rest of the wealth management arms (including the financial planning networks) will probably go too.
Banks always have and always will attract the type of individual who wants to make a lot of money from being ‘a banker’. And while there are plenty of decent ones around, the truth is there are plenty of abhorrent individuals willing to fleece other people for their own benefit. Things took a turn for the worse when the banks began to get into the wealth management game in the early 2000s.
All the banks charge Lender Mortgage Insurance when home loans with more than 80% loan-to-value ratios are taken. Let’s get this very clear. This is a very expensive premium. And you pay it to protect the bank if you can’t repay the loan. That’s right, you’re paying an insurance policy that protects THE BANK...
A huge part of NAB’s earnings heavily stand on the mortgage market, recent issues with home loans have dealt more than just a heavy blow to NAB. Large amounts of risk come from NAB shares, as of today they are trading at $28.72 a share. Their value has decreased over time.
The Commonwealth Bank has suffered unexpected outage that involved customers at cash registers around the country for over a full day. They announced a conclusion to the marathon outrage on its social networks.
This is exactly one of the reasons why a decentralised crypto based system will be better than the centralised banking systems we rely on today. And as you’ll see from my Crypto Tech Investor essay, it’s not the only problem we face when dealing with banks.
Prime Minister Malcolm Turnbull may be one step closer to passing corporate tax cuts. This comes after One Nation’s Senator, Pauline Hanson, backflipped and announced she would back the company tax plan. Ms Hanson struck a deal with the Turnbull government. But what does this tax cut plan mean for Aussie businesses and workers?
What’s far more important is how investors reacted to the Fed’s outlook and their decision to increase interest rates. After the rate hike decision, US bond yields spiked, almost clearing 3%. But even before bond yields reach that 4% market, there’s one group of stocks that could fall regardless. Some believe 2018 could be the tipping point for big US tech.
Westpac Banking Corporation [ASX:WBC] have been consistently decreasing in share value for almost a year. Why? Find out here...
Today, ANZ [ANZ:ASX] have had a small rise in share value, growing by a mere 0.14% They are now trading at $28.005 a share, while sitting on a market cap of $81.12 billion and enterprise value of $77.7 billion. Currently…