Australian banks

Man, WTF, from Banking Day: The tenor of the political response in Australia to public angst over the admitted and alleged instances of misconduct in the banking industry has nosedived once more.

Oh yes, from the AFR: Self-managed superannuation fund investors who are now being lured into funds that offer high returns by lending to property developers the bank have rejected, risk major financial losses, according to experts.

Though not all.

By Leith van Onselen The Australian Prudential Regulatory Authority (APRA) has taken regulatory capture to a whole new level, lowering the “stable funding” factor on self-securitised assets from 65%-100% to 10%, thus lessening competition for deposits.

Cross-posted from Independent Australia: The Commonwealth Bank initiated the Comminsure scam because they got away with the BankWest, Colonial First State and Storm Financial scams.

There is no OPEC deal but the Jedi wave of its hand is enough and off we go.

From Zero Hedge, Deutsche continues to track for the abyss: From Frances Coppola at Forbes: The proximate cause of the latest panic is the US Department of Justice’s proposed $14bn fine for mis-selling American MBS prior to the 2008 financial crisis.

Find above investigative journalist, Michael West, pleading the case for a banking royal commission.

Big Iron is running on the spot at the moment with BHP -0.7%, RIO -0.3% and FMG 1.4% as Dalian is up 1% today: BHP is still fighting to break through its bullish ascending triangle pattern and FMG may be forming a mighty double-top but neither is confirmed.

Dalian is down 2% today taking Big Iron with it.

BHP is still trying to break its bullish ascending triangle pattern today down -0.2%.

From Paul Kelly over the weekend: National Australia Bank chairman and former Treasury chief Ken Henry warns that Australia faces an unacceptable risk with its budget deficit and fears the nation will wait for a painful economic crunch before confronting true ­financial repair.

Big Iron is running again as Dalian adds a few points.

Here’s the latest from Reuters in iron ore: Surging coal prices are prompting many Chinese steel mills to opt for higher grade iron ore to boost efficiency and use less coal, forcing suppliers of low-grade ore from India and Iran to offer deep discounts to attract buyers.

Not much fun for equities today.

Big Iron is back, pinning its hopes to China’s suddenly gob-smacking property bubble (pun intended) with BHP 1.2%, RIO 1.5% and FMG 2.1% and again pushing $5: Dalian has opened soft after last night’s gains and I really can’t see the upside here.

From Fitch: No surprise at all, really. S&P sees a slight fall:   The number of Australian housing loans in arrears declined in July for the second consecutive month for prime residential mortgage-backed securities (RMBS), as measured by Standard & Poor’s Performance Index (SPIN).

Chinese markets have re-opened after a few days off and Dalian iron ore is immediately under pressure again, down -1%.

From ADCM Review: As at the end of August, international bond issuance by Australian financial and non-financial corporate borrowers exceeded the equivalent of A$114 billion.