Few articles on AFR today exploring the $400m spent by CBA on compliance work as all this started coming out. That there have been executive movements and may be more. Also some commentary explaining that 5ish% was priced in for Austrac when tracking bank falls over the past year. CBA fell more, why's that?
Those wanting to see the banks go to $0 good luck to them. I think CBA is up to 9-10% fully franked dividend with modest EPS growth.
Don't forget the royal commission was agreed to by the banks, they eventually called for it once it was clear the TOR would be modest. It's also worth going to read the TOR of the RC you will see that there aren't going to be major surprises / recommendations coming out of it in terms of prudential regulation - it is expressly not allowed to do so.
Yes there may be some further regulations but it will not be EPS destroying. It will be marginal. Did we really hear anything come out of the RC that made me think we have a systemic problem? It was a few case studies of aggrieved customers, so there may be some compensation. Great, seems fair actually!
Keep dreaming that the govt is going to destroy the wealth of the banks - will they increase pension provisions at the same time?
I was happy with the stable open, so I'm back in for a trade.
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