Tornado Alley (PROG)

[fuagf]

Commonwealth Bank hit with $1b capital charge after scathing APRA report

"AMP CEO RESIGNS OVER SCANDALS"

May 1 2018 at 8:15 AM
Updated May 1 2018 at 11:03 AM

IMAGE

by James Eyers Jonathan Shapiro

The prudential regulator has slammed Commonwealth Bank's board, senior management and culture in a scathing 110
page report that lambasts the bank for its widespread complacency, overconfidence, excessive complexity and insularity.

[...]

The report has landed at a politically sensitive time for the banking sector, which has had its reputation shredded in recent weeks by the banking royal commission.

The Australian Prudential Regulation Authority (APRA) report chastised CBA for a "slow, legalistic and reactive, at times dismissive, culture" and said "an overly
collegial and collaborative working environment [had] lessened the opportunity for constructive criticism, timely decision-making and a focus on outcomes".

[...]

CBA told the ASX the $1 billion capital penalty would increase risk weighted assets by $12.5 billion and reducing common equity tier 1 capital (CET1) ratio
by 29 basis points from 10.4 per cent to 10.1 per cent. The penalty is not severe in a historical context. In 2004, APRA forced National Australia Bank
to add 100 basis points to its Tier I capital ratio after the foreign exchange fraud debacle - three times larger than the impact to CBA's capital position.

http://www.afr.com/business/banking-and-finance/financial-services/commonwealth-bank-hit-with-1b-capital-charge-after-scathing-apra-report-20180430-h0zg14

These posts may be of interest to some, as many of the problems outlined in the articles would
be consistent with mismanagement of financial institutions in the U.S.A. As you all well know.

Not holding any breath waiting for one of the top people in any of Australian financial
outfits going to jail for something like, dunno, like maybe criminal neglect, or anything.