2nd July Links: Banking scams

Global Macro:

  • The global scam that may prove fatal for Barclays, RBS and LLoyds Ian Fraser
  • Banks conspire to fleece the public Big Picture

United States:


  • German parliament approves EU bailout fund Reuters, waiting for the constitutional court.
  • David Cameron ‘prepared to consider an EU referendum’ BBC
  • What did BoE say to Barclays about Libor? BBC
  • Spanish bailout saves German pain IFR
  • Germany denies Schauble talk on Greek exit Reuters
  • Denmark passes the torch to Cyprus Famagusta
  • China’s grow weakens as new orders drop Bloomberg
  • China’s official PMI hits 7 months low Reuters
  • Japan’s manufacturing PMI not so good either Markit
  • Bangladesh slams World Bank move to cut bridge funds Reuters
  • China must keep property curbs: Vice Premier Li Reuters


  • Carbon Tax blitz begins TheOz
  • Airlines slow to cut surcharge SMH
  • Australians rush to safe-havens of bank deposit accounts BusinessDay
  • No signs of recovery yet Domain
  • Cash rate is dominant despite what banks say Gittins!
  • Japanese bank may enter the Oz home loan market AFR


  • We don’t all see the same colours Mail on-line, I’ve always wondered about that.
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  1. From the link to Japanese banks considering entering our mortgage market.

    “Loans in one currency funded by deposits in another currency could create a balance sheet mismatch for a foreign competitor that bank regulators would not look favourably upon.

    Hence, the perceived need for an entrant to hedge Japanese yen against the Australian dollar to insure against unfavourable forex movements that would add to costs and eliminate any cost of funds advantage.

    However, it is believed the Japanese bank is considering drawing on Aussie-dollar denominated deposits that are popular with savers in its home country.

    This would avoid hedging costs and expose depositors, rather than the bank, to fluctuations in the exchange rate.”

    What could possibly go wrong here? What with the AUD being a safe haven anyway.

  2. I’d guess that Japanese bank is Sumitomo – they are already here in Australia via Henley homes and do some cross promotion with them already.

    • As Catallaxy says, ‘the first victim of the carbon tax’!

      Of slightly more interest to have to been able to see the off camera ‘preparation’ – was this an ABC thing or, surely not, entirely Labor’s responsibility. And what is this whole ‘outdoor interview’ thing about anyway…